02:15 PM EST, 11/07/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month price target by $15 to $42, based on 3.0x our FY 26 revenue estimate and below the company's three-year average forward EV/Sales multiple of 3.4x, reflecting our view of decelerating revenue growth, higher state taxes, and a stable but weaker low- to middle-income consumer. We lower our FY 25 EPS estimate by $0.25 to $0.50 and maintain our FY 26 EPS estimate of $1.05. We believe the company has a growth opportunity with prediction markets. DKNG posted normalized FQ3 EPS of -$0.26 vs. -$0.17, $0.15 above consensus estimates on revenues of $1.14B vs. $1.10B and $58M below estimates. Monthly Unique Payers (MUPs) increased 2% to 3.6M while Average Revenue Per MUP increased 3% to $106. The company said customer-friendly outcomes impacted its results but saw its Sportsbook Handle increase 17% Y/Y in October. DKNG slashed its full-year revenue guidance to 26% at the midpoint compared to 32% a quarter ago and now expects adjusted EBITDA of $500M at the midpoint compared to $850M a quarter ago.