DraftKings Stock Eyes Rebound After Bull Note

DraftKings Inc (NASDAQ:DKNG) stock is 4.9% higher before the bell, last seen at $19.50, after Bank of America upgraded the sports betting name to "buy" from "neutral." The firm maintained a $27 price target, representing a roughly 45% premium to Friday's close, and called the stock's recent pullback an attractive entry point. The analyst in coverage also highlighted DraftKings' prediction markets as a "win-win," estimating they could generate $400 million in fees in 2027 and another $200 million to $400 million from market making.

DKNG is looking to rebound from Friday's more than three-year low of $18.52. The shares have struggled throughout 2026, sporting both year-over-year and year-to-date deficits of around 46%. 

There is plenty of pessimism surrounding DraftKings stock that could unwind. Short interest represents 8.3% of the equity's available float and would take more than three days to cover, at DKNG's average pace of trading.

Options traders have also been more bearish than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and Nasdaq OMX PHLX (PHLX), DKNG's 50-day put/call volume ratio ranks in the 80th percentile of its annual range.

Meanwhile, the stock's 14-day Relative Strength Index (RSI) sits at just 13.7, deep in "oversold" territory and suggesting a short-term bounce may have been overdue.