Proactive Investors
05 Oct 2026, 17:40 UTC · 1h ago
DraftKings upgraded to 'Buy' by BofA on prediction market opportunity
Impact · against what's priced in
The BofA upgrade is marginally positive for DraftKings as it provides a concrete valuation path for the prediction market opportunity, which the market had previously viewed as a threat. While the 2026 EBITDA cut is a drag, the projected 2027 upside challenges the market's current assumption of severe revenue deceleration.
- DKNG+0.30
Challenges what's priced in
- The price assumes
Revenue growth sustaining in the low-to-mid teens rather than falling to 6%
The market is not paying for growth above 6%, but BofA's projection of $400M in fees plus $200M-$400M in market-making by 2027 suggests a structural revenue lift that contradicts the priced-in deceleration.
What DKNG's price assumes · Sep 13
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