Benchmark Co. Reiterates Buy Rating on DraftKings (DKNG) Stock

DraftKings Inc. (NASDAQ:DKNG) is one of the Stocks to Buy with Exponential Growth Heading into 2026. On October 22, analyst Mike Hickey from Benchmark Co. reiterated a “Buy” rating on the company’s stock, keeping the price objective at $43.00. The analyst’s rating is backed by a combination of factors demonstrating DraftKings Inc. (NASDAQ:DKNG)’s potential for long-term growth. Its strategic acquisition of Railbird Technologies has been regarded as the pivotal move, enabling the company to enter the prediction markets and improve its total addressable market, believes Hickey.

The analyst further believes that this acquisition enhances the company’s regulatory and technological capabilities and positions it to exploit new growth opportunities in the digital gaming. The move is being considered both as a defensive strategy, maintaining relevance in the changing regulatory landscape, and an offensive strategy to tap the rapidly growing market.

Also, the analyst believes that the broader industry trends and potential state-level legalization efforts can improve DraftKings Inc. (NASDAQ:DKNG)’s market, offering significant long-term growth prospects.

Brown Advisory, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

“We initiated positions in DraftKings Inc. (NASDAQ:DKNG) and Fair Isaac Corporation (FICO) during the quarter. DraftKings (DKNG) is a leader in the rapidly expanding U.S. online gaming and sports betting market, capitalizing on ongoing state-by-state legalization and a growing total addressable market. As a co-leader in the industry, DraftKings is uniquely positioned to benefit from favorable regulatory trends and increased consumer adoption. The company is demonstrating improving economics, supported by disciplined cost management and operational leverage. With continued expansion, product innovation, and a strong brand, DraftKings is well-equipped to capture additional market share and sustain long-term growth.”

While we acknowledge the potential of DKNG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.