Bank of America analysts predict strong gains for sports betting company DraftKings due to the 2024 Super Bowl’s high wagering activity and the Philadelphia Eagles’ victory. According to analyst Shaun Kelley, DraftKings may see an additional $20 million to $25 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) year-over-year. The company has already seen a significant increase in handle growth, with its average January handle going up 19%. However, Kelley notes that DraftKings may face headwinds from higher taxes in Maryland and Ohio, as well as launch costs in Missouri. Despite this, most analysts on Wall Street are bullish on the name, with a strong buy rating from 32 out of 37 covering analysts. The consensus price target over the next 12 months is nearly $52, representing more than 19% upside.
Source: https://www.cnbc.com/2025/02/12/super-bowl-betting-and-eagles-win-to-boost-draftkings-bank-of-america-says.html