DraftKings Stock Slides After Roth Capital Report Sees Q3 Earnings Miss
Investing.com
Published Nov 02, 2021 12:39PM ET
By Sam Boughedda
Investing.com — Shares of DraftKings Inc (NASDAQ:DKNG) fell more than 4% on Tuesday after Roth Capital said the company is poised for a third-quarter earnings miss.
DraftKings shares are trading at $46.82 at midday.
In a research note, Roth Capital analyst Edward Engel told investors that it is "becoming increasingly clear" the company is set for a Q3 miss and "underwhelming" 2021 guidance when it reports its earnings on Friday.
Engel pointed to Flutter Entertainment's quarterly report and net gaming revenue across U.S. states in September as reasons to back up his view. He said the third and fourth quarters are the company's "seasonally weakest quarters from a market share perspective."
While Engel sees analysts on Wall Street lowering Q4 forecasts for DraftKings, he kept a $41 price target and sell rating on the stock.
Elsewhere, Morgan Stanley analyst Thomas Allen resumed coverage of DraftKings with an equal weight rating. Allen set a $53 price target, saying he sees a "balanced catalyst path" for the company in the near to mid-term.
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