DraftKings stock price target raised to $50 by Benchmark on Railbird talks
Investing.com
Published Jul 15, 2025 08:20AM ET
Investing.com - DraftKings Inc. (NASDAQ:DKNG) received a price target increase from Benchmark, which raised its target to $50.00 from $45.00 while maintaining a Buy rating on the stock. According to InvestingPro data, analyst targets range from $36 to $74, with the stock showing strong momentum, gaining over 13% in the past six months.
The price target adjustment follows reports that DraftKings is in acquisition talks with Railbird Exchange, a federally licensed prediction market platform that received approval from the Commodity Futures Trading Commission (CFTC) earlier this year.
Railbird Exchange allows users to trade on real-world outcomes across sports, politics, and macro events, and is legally accessible in states like California and Texas where online sports betting remains prohibited.
Benchmark views this potential acquisition as "a very positive development," particularly after DraftKings previously withdrew its application for a federal license.
Railbird's federal license could provide DraftKings with a high-margin, scalable entry point into underpenetrated states while avoiding state gaming and federal excise taxes, with the product expected to expand beyond moneyline-style wagers into spreads, props, and parlays.
In other recent news, DraftKings Inc. has been the focus of multiple analyst reports highlighting various developments. Citi reiterated its Buy rating on DraftKings, maintaining a price target of $58, citing positive market multiple expansion and improved operational metrics. However, Citi also noted potential regulatory and tax headwinds that could impact DraftKings' 2025 financial outlook. Mizuho also maintained its Outperform rating with a $58 price target, emphasizing that DraftKings is undervalued compared to FanDuel, which recently saw a valuation boost following Boyd Gaming (NYSE:BYD)'s sale of its 5% stake for $2 billion. JMP Securities reiterated a Market Outperform rating and a $50 price target, dismissing concerns about legislative impacts on the sports betting industry as overblown. Jefferies, on the other hand, lowered its price target to $53 due to anticipated tax headwinds from several states, although it maintained a Buy rating. Jefferies' revenue estimates for the second quarter remain at $1.40 billion, with adjusted EBITDA at $212 million, slightly differing from consensus estimates. These updates reflect the mixed outlook from analysts, considering both opportunities and challenges facing DraftKings.
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