From Financial Modeling Prep: 2025-04-07 15:19:00

Needham maintains Buy rating on DraftKings (DKNG) with $65 price target despite cutting Q1 adjusted EBITDA forecast by $70 million due to March Madness results. Firm expects momentum to return in Q2, citing Duke’s tournament exit as a potential boost. Short-term volatility shouldn’t deter long-term investors as sports outcomes are unpredictable.

Investor concerns include slowing handle growth, potential recession, state tax burdens, competition from prediction markets, and hold questions. Needham believes these worries are overstated or manageable in the long run. Recent share price pressure seen as a buying opportunity for investors focused on DraftKings’ growth in online sports betting and iGaming markets.



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