Truist reiterates Buy on DraftKings stock, $29 target maintained

Investing.com reports that Truist Securities has reaffirmed its Buy rating on DraftKings Inc. (DKNG) with an unchanged $29 price target. This decision comes after the company's second-quarter earnings fell short of market expectations. Truist provided insights into customer acquisition trends, the launch of an in-house exchange, and other operational indicators that influenced the quarter's performance.

The current share price is $24.63, which is below the $29 target set by the firm. According to InvestingPro data, DraftKings appears undervalued based on their Fair Value analysis. The company's core business continues to expand, with a 15% revenue growth and a gross profit margin of 76%. Truist anticipates DraftKings to outperform forecasts in its core operations, leading to profitable returns in prediction markets.

Analysts forecast profitability for the company this year, with forecasted earnings of $0.94 per share. Truist maintains its 2026 and 2027 estimates without any changes. Despite the earnings miss, DraftKings adhered to its guidance.