Northland, Mizuho Cut DraftKings (DKNG) PT Amid Rising Competitive Threat from Prediction Markets
DraftKings Inc. (NASDAQ:DKNG) is one of the best high volume stocks to buy according to Wall Street analysts. On October 13, Northland lowered the firm’s price target on DraftKings to $30 from $33 and kept an Underperform rating on the shares. The firm noted that massive funding rounds for Kalshi (raising $300 million, valuing it at $5 billion, and tracking $50 billion in annual volume) and Polymarket (securing a $2 billion investment from ICE, the owner of NYSE) signal the growing competitive threat prediction markets pose to sports betting companies.
Earlier on October 7, Mizuho lowered the price target on the company to $54 from $58, while maintaining an Outperform rating on the shares. Mizuho remains constructive on DraftKings’ long-term potential, but at the same time, the firm also believes that the estimates need to be adjusted lower in the near and medium term before the stock can see support.
DraftKings Inc. (NASDAQ:DKNG) operates as a digital sports entertainment and gaming company in the US and internationally. It provides online sports betting, daily fantasy sports, media, digital lottery courier, media, and other products, as well as retail sportsbooks.
While we acknowledge the potential of DKNG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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