Bank of America upgraded DraftKings from Neutral to Buy, sending shares up 5%, with analyst Julie Hoover keeping a $27 price target that implies 45% upside. Hoover called the stock's 47% year-over-year pullback an attractive entry point, citing DraftKings' position as the third-largest player in prediction markets. BofA estimates prediction markets could generate roughly $400 million in fees for DraftKings by 2027, plus $200 million to $400 million from market-making, while a regulatory shutdown would remove the terminal value overhang. The firm lowered its 2026 EBITDA estimate from $625 million to $500 million but raised its 2027 EBITDA estimate from $1.05 billion to $1.15 billion, and said DraftKings could guide 2027 EBITDA in the $1.0 billion to $1.2 billion range. The $27 target is based on a 12x multiple of 2027 EV/EBITDA, and BofA said it wants stronger cost discipline in the core business to support 2028 margins.
DraftKings IncBofA upgraded DraftKings to Buy and raised its 2027 EBITDA estimate to $1.15 billion, citing an attractive entry point after a 47% pullback.
Bank of America Corp