12:00 PM EDT, 07/01/2024 (MT Newswires) -- DraftKings ( DKNG ) faces "transitory" pressures amid higher new-player promo mix, increased taxes in Illinois and investments in Jackpocket, among others, Oppenheimer said in a Sunday note.

The investment firm reduced its Q2 and full-year 2024 EBITDA forecast for the company due to the mentioned short-term headwinds, but raised revenue estimates for the years 2024 to 2026 on the back of user growth, online sports betting handle, and increased promotional activity.

DraftKings ( DKNG ) is also "growing its overall iGaming market-share," Oppenheimer said, noting that the company's strong narrative on monthly unique players is in line with third-party data. Furthermore, Jackpocket presents the company with "massive" cross-selling opportunities, Oppenheimer added.

Oppenheimer lowered its price target on DraftKings ( DKNG ) stock to $58 from $60 but maintained its outperform rating.

Shares of DraftKings ( DKNG ) were down more than 3% in recent trading.

Price: 36.79, Change: -1.39, Percent Change: -3.63