BMO cuts DraftKings stock price target on revenue miss, investment costs

Investing.com · 2026-11-06 14:32 UTC

BMO cuts DraftKings stock price target on revenue miss, investment costs

Investing.com - BMO Capital lowered its price target on DraftKings Inc. (NASDAQ:DKNG) to $26 from $50 while maintaining an Outperform rating on Wednesday. The stock currently trades at $17.20, down from a previous close of $23.11, and has declined roughly 32% year-to-date. Despite the recent weakness, InvestingPro analysis suggests the stock remains undervalued relative to its Fair Value, placing it among opportunities on the platform’s Most Undervalued list.

The company reported third-quarter 2026 results that missed expectations, with revenue coming in 4.2% below consensus estimates. All three business segments underperformed analyst projections.

DraftKings issued initial 2027 guidance that fell short of Wall Street expectations. Revenue and adjusted EBITDA guidance at the midpoint came in 1% and 20.5% below consensus, respectively. An InvestingPro tip notes that 7 analysts have revised their earnings downwards for the upcoming period, reflecting broader concern about near-term prospects. For deeper insights into DKNG’s financial health and access to exclusive Pro Research Reports covering over 1,400 US stocks, visit InvestingPro.

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