Wells Fargo Upgrades DraftKings to Overweight, $49 Price Target

Written by Emily J. Thompson, Senior Investment Analyst

DKNG+2.62%

FLUT-0.83%

Source: seekingalpha

Updated: 1h ago

0mins

Source: seekingalpha

Rating Adjustment: Wells Fargo upgraded DraftKings (DKNG) to Overweight, anticipating Q4 earnings to exceed the $273 million high-end guidance, indicating strong near-term growth potential.
Flutter Entertainment Downgrade: In contrast, Flutter Entertainment (FLUT) was downgraded to Equalweight due to lower handle growth and higher promotional activities, with analysts expecting disappointing earnings reflecting increased market competition.
Price Target Analysis: DraftKings' price target is set at $49, representing a 40% upside potential, while Flutter's target is $228, indicating only a 12% upside, highlighting a significant disparity between the two companies.
Market Reaction: DraftKings shares rose 1.3% in premarket trading to $34.77, while Flutter shares dipped 0.3% to $199.85, reflecting investor optimism regarding DraftKings' outlook.

DKNG

$35.12+Infinity%1D

Analyst Views on DKNG

Wall Street analysts forecast DKNG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DKNG is 44.25 USD with a low forecast of 30.00 USD and a high forecast of 63.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

28 Analyst Rating

23 Buy

5 Hold

0 Sell

Strong Buy

Current: 34.320

Low

30.00

Averages

44.25

High

63.00

Current: 34.320

Low

30.00

Averages

44.25

High

63.00

Texas Capital

Hold

initiated

$39

Al Analysis

2026-01-08

Reason

Texas Capital

Price Target

$39

Al Analysis

2026-01-08

initiated

Hold

Reason

Texas Capital initiated coverage of DraftKings with a Hold rating and $39 price target. While the firm says it normally would view buying a "blue chip" online gaming stock, such as DraftKings, on its recent valuation dip as a buying opportunity, it sees outsized stock volatility in the relative near-term given the company's pure-play nature combined with recent prediction market expansion, current investor skepticism on hold and win-rate and possible online gaming tax increases in a few states, adding that the firm is "Neutral but not negative."

BofA

Shaun Kelley

Neutral

maintain

$35

2026-01-05

Reason

BofA

Shaun Kelley

Price Target

$35

2026-01-05

maintain

Neutral

Reason

BofA analyst Shaun Kelley raised the firm's price target on DraftKings to $37.50 from $35 and keeps a Neutral rating on the shares. The Gaming and Lodging group "appears to be at a crossroads" to start 2026 as the year offers easy comps, OBBB refunds and stimulus, but also still has a stretched consumer after years of inflation, the analyst tells investors. Negative estimate revisions trumped low valuations in 2024 and 2025 and the firm is "fearful this continues in 2026," the analyst added in a note on the group.

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Truist

Buy

maintain

$45 -> $43

2025-12-22

Reason

Truist

Price Target

$45 -> $43

2025-12-22

maintain

Buy

Reason

Truist lowered the firm's price target on DraftKings to $43 from $45 and keeps a Buy rating on the shares. After a tough start to NFL, online sports betting sporting outcomes have turned favorable for operators while handle has been very strong despite prediction market cannibalization concerns, the analyst tells investors in a research note. Truist adds however that its reduced price target reflects more conservative hold assumptions, prediction launch costs, UK taxes, etc., and while DraftKings has finally launched its own Prediction Markets offering, there are "multiple and sizable risks along the way".

BTIG

Buy

maintain

$42 -> $45

2025-12-05

Reason

BTIG

Price Target

$42 -> $45

2025-12-05

maintain

Buy

Reason

BTIG raised the firm's price target on DraftKings to $45 from $42 and keeps a Buy rating on the shares after meeting with its management team to discuss iGaming growth trajectory and prediction markets. The firm is constructive on the setup for DraftKings from here forward, per near-term pacing vs. guidance, and the FY26/27 fundamental setup against muted current expectations and sentiment, the analyst tells investors in a research note.

About DKNG

DraftKings Inc. is a digital sports entertainment and gaming company. It provides users with online and retail sports betting (together, Sportsbook), online casino (iGaming) and daily fantasy sports product offerings, as well as digital lottery courier, media, and other product offerings. Sportsbook is live with mobile and/or retail sports betting operations pursuant to regulations in 28 states, Washington, D.C., and in Ontario, Canada. It operates iGaming pursuant to regulations in five states and in Ontario, Canada under its DraftKings brand and pursuant to regulations in four states under its Golden Nugget Online Gaming brand. It owns Jackpocket, a digital lottery courier app in the United States. It is both an official daily fantasy and sports betting partner of the NFL, NHL, PGA TOUR, WNBA and UFC, as well as an official daily fantasy partner of NASCAR, an official sports betting partner of the NBA. It also owns and operates DraftKings Network, a multi-platform content ecosystem.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.