Bernstein Begins Coverage of DraftKings (DKNG) Stock with $46 PT

On June 4, Bernstein initiated coverage of DraftKings Inc. (NASDAQ:DKNG)’s stock with an “Outperform” rating and a price objective of $46. The firm mentioned DraftKings Inc. (NASDAQ:DKNG)’s robust position in the online sports betting (OSB) and iGaming sector. Furthermore, it also noted its potential for sustained profitability growth.

Bernstein Begins Coverage on DraftKings (DKNG) Stock with PT of $46

A woman at a betting table paying out customers who won their sports bets.

The firm’s analysts highlighted DraftKings Inc. (NASDAQ:DKNG)’s enhanced live pricing capabilities, which have seen a significant improvement by the acquisition of SimpleBet. This development has been tagged as a critical driver for capturing growth in the US live betting market, and boosting the handle and profitability growth.

Furthermore, the analysts lauded DraftKings Inc. (NASDAQ:DKNG)’s unique capability to capitalize on event-driven engagement. Notably, the potential for cross-selling with Jackpocket and the integration into the company’s core platform have also been tagged as significant upcoming catalysts.

The company stated that its average Monthly Unique Payers (MUPs) increased to 4.3 million in Q1 2025, reflecting a rise of 28% as compared to Q1 2024. This rise demonstrates strong unique payer retention and acquisition throughout DraftKings’ Sportsbook and iGaming product offerings and the impact of the acquisition of Jackpocket.

DraftKings Inc. (NASDAQ:DKNG) operates as a digital sports entertainment and gaming company.

While we acknowledge the potential of DKNG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than DKNG and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.