Key Takeaways
- JPMorgan cut its DraftKings price target to $30 from $33 on Oct. 20 and kept its Overweight rating, a target 46% above Tuesday’s close.
- DraftKings stock has fallen 45% from its January high after a weak second quarter, heavy spending on prediction markets and a strong start for rival Kalshi.
- Over the past 90 days, analysts cut their 2026 earnings estimate to $0.87 a share from $1.03, but their 2027 estimate of $1.71 has barely moved.
- The $30 target implies 27.6x forward earnings against 18.2x at Monday’s close, so the call is plausible but stretched, and it depends on 2027’s growth showing up.
DraftKings (DKNG) closed Monday 45% below its January high, and Wall Street is still trimming its targets. On Tuesday, JPMorgan cut its price target to $30 from $33 but kept its Overweight rating, a call that still points to 46% upside.
Spending more, earning less
DraftKings peaked at a $36.24 close on Jan. 5. Two things sank it from there.
First, the second quarter. On Aug. 6, DraftKings reported revenue down 5% to $1.44 billion, even as sports consumer volume rose 15%. Adjusted EBITDA fell to $115 million from $301 million, and a $157.9 million profit a year earlier became a $67.6 million loss. DraftKings blamed results that went bettors’ way and heavier promotions to sign up new Sportsbook and Predictions customers. The full-year guidance it kept includes an incremental $200 million to $300 million of Predictions spending this year.
Second, Kalshi. The stock fell 7.6% on Sept. 17 after Needham estimated that Kalshi took 76% of sports prediction-market volume in the NFL’s opening week, against 3% for DraftKings’ own exchange.
By Sept. 30, the stock had closed at $19, its lowest since April 2023.
TIKR tracks 37 analysts on DraftKings. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on DraftKings, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See DraftKings’ Analyst Ratings
JPMorgan has plenty of company
JPMorgan analyst Daniel Politzer’s $30 target sits [46%] above Tuesday’s [$20.48] close. Guggenheim, Susquehanna, Citi, Morgan Stanley and Truist also cut targets this month, and all kept Buy ratings.
The bulls are even multiplying. Bank of America upgraded the stock to Buy on Oct. 5, and 31 of the 37 analysts on TIKR now rate DraftKings Buy or Outperform, up from 29 of 34 at the end of September 2025.
Does $30 add up?
Analysts’ targets have fallen hard, though. The consensus target is down to $34 from $51 a year ago.
JPMorgan’s $30 sits below that average and the $31 median, in a range that runs from $20 to $76: a modest call, as bulls go.
Earnings are the bigger question. Over the past 90 days, analysts cut their 2026 estimate to $0.87 a share from $1.03. But they still expect earnings to roughly double in 2027.
That 2027 estimate, $1.71, is just about where it was 90 days ago ($1.72), so the cuts so far have landed on this year’s numbers.
At Monday’s close, DraftKings traded at 18.2x forward earnings. JPMorgan’s $30 works out to 27.6x, so getting there takes a higher multiple, or the 2027 jump arriving on schedule.
A bet on 2027
The risk is the spending. On the Q2 call, CEO Jason Robins said that if this fall’s customer acquisition looks like the second quarter’s, spending above plan “would be the wise move.” That would squeeze estimates that have already slipped.
I think JPMorgan’s call is plausible but stretched. With this year’s estimates still falling, $30 depends on DraftKings doubling its earnings in 2027. If it does, the target is within reach without much help from the multiple.
Next up is the third-quarter report, due in a few weeks. If the $1.71 for 2027 survives it, JPMorgan’s target gets a lot easier to believe.
So what is DraftKings stock actually worth?
TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR’s valuation model and see what DraftKings could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It’s free to use.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
