DraftKings Inc (DKNG)

[John-Knee]

DraftKings Likely to Raise Full-Year Revenue Guidance Amid Strength in iGaming in Q1, BofA Says
2021-05-04 02:09:06 PM ET (MT Newswires)
   
   
02:09 PM EDT, 05/04/2021 (MT Newswires) -- DraftKings (DKNG) is expected to revise its full-year 2021 revenue guidance higher as Q1 sales are likely to come notably above the Street's estimates due primarily to the "strength" in the company's iGaming business, BofA Securities said in a research note Tuesday.

BofA analysts lifted the Q1 sales outlook to $296 million from their previous forecast of $242 million, compared to the market's expectations of $237 million. Q1 results, which are likely to show iGaming sales soared by 45% quarter on quarter, are due May 7.

The brokerage anticipates a revised sales guidance range from the firm of $1 billion to $1.1 billion, versus earlier projections of $900 million to $1 billion, "given the productivity" in new states.

"DKNG tends to be conservative so the raise may be more modest than the $1.2 billion run-rate implied by Q1," the analysts said. BofA has a $70 price target on the stock and a neutral rating, which was because of factors such as "steep" valuation and more cautious sentiment across the online gaming space.