UBS raised its price target for DraftKings Inc. to $49. This is an increase from the previous $43 target. The firm maintains a Buy rating on the stock.
DraftKings exceeded Wall Street revenue estimates in the first quarter. The company also beat EBITDA expectations. Management reiterated its financial guidance for the year.
UBS analysts interpret the reiterated guidance as an underlying raise to core revenue.
The firm based its updated valuation on discounted 2028 estimated EBITDA. UBS utilized an unchanged 17x EV/EBITDA multiple for the calculation.