08:05 AM EDT, 05/03/2024 (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 maintain our 12-month price target of $42, based on 4.0x our 2024 revenue estimate and slightly higher than peer average forward price to sales ratio of 3.7x, reflecting its leadership position and leading technology within the mobile sportsbook and iGaming sub-industry. We maintain our '24 and '25 adjusted EPS estimates of $0.25 and $0.50, respectively. DKNG posts normalized Q1 EPS of $0.03 vs. ($0.51), $0.14 above consensus estimates on revenues of $1.18B vs. $770M and $51M above estimates. Q1 Monthly Unique Players (MUPs) grew 23% Y/Y to 3.4M while Average Revenue Per (ARP) grew 25% to $114 due to improvement in the company's sportsbook hold rate and better promotional reinvestment. DKNG raised its full year guidance to $4.9B at the midpoint and adjusted EBITDA of $500M at the midpoint. We remain neutral as the company trades at 4.2x our '24 revenue estimate of $5.0B, which we believe is fair for a company growing its top-line 81% annually over the past 3 years. We see 25% growth over the next 3 years.