BofA Securities reiterated a Neutral rating and $27 price target on DraftKings Inc. (NASDAQ: DKNG) ahead of the company’s upcoming Investor Day on March 2.
The analyst expects the event to focus on four key areas: the DraftKings Predictions opportunity and medium-term financial targets; the total addressable market for prediction markets and an updated TAM for core online sports betting (OSB) and iGaming; revised revenue and profit targets for 2028 and potentially 2030; and updated data on customer acquisition and retention trends amid concerns that prediction markets could cannibalize the core business.
DraftKings previously targeted 2028 revenue and EBITDA of $7.1 billion and $2.1 billion, respectively. BofA believes the company could raise its revenue outlook to between $8.5 billion and $9.1 billion, including approximately $8.2 billion from core sports betting and about $650 million in prediction market fees.
However, the firm expects 2028 EBITDA guidance could be reset lower to $1.5 billion to $1.7 billion, with roughly $1.5 billion from core operations and $100 million to $150 million from Predictions. BofA maintained its Neutral stance, citing heightened competition from prediction markets.
