Here's What Wall Street Thinks About DraftKings Inc. (DKNG)

DraftKings Inc. (NASDAQ:DKNG) is among the Stocks That Will Make You Rich in 2026. On December 22, Barry Jones from Truist Financial reiterated a Buy rating on DraftKings Inc. (NASDAQ:DKNG) but lowered the price target from $45 to $43. Earlier on December 19, Stephen Grambling from Morgan Stanley also reiterated a Buy rating on the stock with a $50 price target.

The ratings come after the company, on December 19, announced the launch of its Prediction App in 38 states in the US. Analysts at Truist Financial noted that the company’s competitor, FanDuel, is also expected to launch a similar app. However, the firm highlighted that both companies continue to proceed with the launch despite the potential regulatory challenges. The firm expects DraftKings Inc. (NASDAQ:DKNG) to face multiple court cases regarding its latest app launch. Moreover, the share price of the company has also not moved significantly since the announcement, suggesting a muted investor enthusiasm.

On the other hand, Morgan Stanley sees the launch as a positive move for the company. The firm noted that the company developed and rolled out the app faster than expected. Grambling of Morgan Stanley noted that the launch depicts management’s efforts to expand its reach beyond traditional sports betting. Moreover, the firm highlighted that while there are concerns regarding near-term margin expansion and the customer acquisition cost, the long-term prospects of this launch remain bright.

DraftKings Inc. (NASDAQ:DKNG) operates as a digital sports entertainment and gaming company, offering online and retail sports betting, iGaming, daily fantasy sports, digital lottery courier services via Jackpocket, and media content through DraftKings Network.

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