Stifel reiterates Buy on Flutter Entertainment stock at $133

Stifel has maintained a Buy rating for DraftKings Inc. (DKNG) with a $36.00 price target. The stock is currently trading near its 52-week low of $20.35, trading at $21.16 and potentially underpriced according to InvestingPro analysis. During the first two weeks of the NFL season, DraftKings' online sportsbook handle, excluding predictions, increased 15% year-over-year.

This growth aligns with the company's overall revenue growth of 15% over the past year, while maintaining a strong gross profit margin of 76%. Stifel cautioned against over-extrapolating from the initial two weeks of data, but noted underlying trends have improved compared to pre-World Cup levels. These improvements are attributed to user retention, cross-selling of acquired users, more engaging NFL content, and a marketing halo effect from promotional spending, which drove greater overall consumer awareness.

Notably, DraftKings did not bring back the Ghost Leg promotion this year. Jeffrey Stantial authored the research note for DKNG. For a comprehensive understanding of the company's valuation and growth potential, InvestingPro provides 12 additional ProTips and Pro Research Reports.