TD Cowen reiterated its “outperform” rating on DKNG
Shares of sports betting behemoth DraftKings Inc (NYSE:DKNG) are up 1.3% premarket, after TD Cowen reiterated its “outperform” rating, though its bull note included a stark warning.
The Wall Street brokerage wrote that the company must prove “market share resilience” in 2024 or DKNG will have trouble moving higher on the charts. As a result, TD Cowen lowered its price target to $35 from $37 — still a 31.4% premium to Friday’s close.
This is DraftKings stock’s second bull note in the last week, with MoffettNathanson hiking its rating on the equity to “buy” on Oct. 24. On Oct. 25, however, BTIG cut its price target to $38 from $39; more adjustments lower could be on the way, too, as the current 12-month average target price of $36.10 is a hefty 35.5% premium to Friday’s perch.
Despite the recent bullish sentiment, DKNG has taken a step back on the charts, losing 1.6% last week to log its third-straight weekly loss. Luckily, the equity’s 160-day moving average stepped up to capture last week’s pullback. What’s more, DraftKings stock is still up almost 134% in 2023.