What is the Street Saying About DraftKings Inc. (DKNG)?

DraftKings Inc. (NASDAQ:DKNG) is one of the most oversold NASDAQ stocks to invest in. Bernstein cut the price target on DraftKings Inc. (NASDAQ:DKNG) to $32 from $41 on February 6, maintaining an Outperform rating on the shares. The rating update came ahead of the quarterly results, with the firm telling investors that it anticipates DraftKings Inc. (NASDAQ:DKNG) to deliver strong fiscal Q4 results this month, supported by favorable sports results. Despite this sentiment, Bernstein believes that this alone would have little effect on investor concerns associated with challenges into 2026.

Why DraftKings Inc. (DKNG) Crashed On Monday

Canaccord also cut the price target on DraftKings Inc. (NASDAQ:DKNG) to $50 from $54 on February 3, maintaining a Buy rating on the shares. The firm stated that digital gambling stocks underwent a sell-off as investor concerns rose about state reports of decelerating handle trends in December that worsened in January. It added that the latest state data continues to suggest broadly in line Q4 results for digital gaming operators, with the weaker handle being offset by a strong hold and rebound of iGaming growth in December. Canaccord sees a favorable setup for DraftKings Inc. (NASDAQ:DKNG), with reset valuations and lowered expectations creating an attractive entry point for investors who are willing to look through short-term volatility.

DraftKings Inc. (NASDAQ:DKNG) is a digital sports entertainment and gaming company that provides online casino, online sports betting, retail sportsbook, daily fantasy sports product offerings, media, and other consumer product offerings.

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Disclosure: None. This article is originally published at Insider Monkey.