12:06 PM EDT, 08/14/2024 (MT Newswires) -- DraftKings' ( DKNG ) decision overnight to scrap a proposed surcharge on online sports betting removed one uncertainty that emerged for the company in recent weeks but left the question unresolved of how it will recoup its costs in higher-tax locations without the extra charge, analysts at Truist said Wednesday.

DraftKings ( DKNG ) said Aug. 1 it would start taking a larger slice of winning bets in certain states in January only to reverse course late Tuesday after customers complained and other sports books, notably Penn Entertainment (PENN) and London-traded FanDuel parent company Flutter, chose not to follow its lead.

In a research note on Wednesday, the Truist analysts said while DraftKings' ( DKNG ) projections for 2025 did not include the proposed surcharge, it expects investors will soon begin to ask how the company will offset the new tax rates taking effect in Illinois and other states. Sports books eventually may consider charging more on certain bets, they said, although they concluded DraftKings ( DKNG ) may have less room for "tinkering" with pricing than some of its competitors.

DraftKings ( DKNG ) also may need to tweak its forecasts, the Truist analysts said, leaving their buy rating and $50 price target it trimmed nearly two weeks ago for the company's shares unchanged.

At least for now. "We'll wait for more color on mitigation," they wrote, referring to customers chasing lower prices on sports bets, adding the recent volatility in DraftKings' ( DKNG ) share price "may reflect a more bearish view around surcharge risks."

DraftKings ( DKNG ) shares were more than 4% higher in recent midday trading on Wednesday.

Price: 32.52, Change: +1.08, Percent Change: +3.44