DraftKings Inc. (NASDAQ:DKNG) is one of the most promising low-cost stocks to buy now. On February 3, Canaccord Genuity analyst Michael Graham lowered the firm’s price target on DraftKings to $50 from $54 with a Buy rating.
The adjustment followed a sell-off in digital gambling stocks driven by investor concerns over state reports showing decelerating handle trends in December and January. Despite these trends, the firm noted that recent data points to Q4 2025 results remaining broadly in line with expectations, as stronger hold and a rebound in iGaming growth helped offset the weaker handle.
The firm believes that the current environment creates a favorable setup for DraftKings, as lowered market expectations and reset valuations provide an attractive entry point for investors. While acknowledging short-term volatility, analysts suggested that the fundamental outlook remains positive for those willing to hold the shares through the current fluctuations.
On January 30, Rothschild & Co Redburn lowered its price target on DraftKings Inc. (NASDAQ:DKNG) to $35 from $37 with a Neutral rating. The firm reduced its estimates across the gambling sector and noted that Q4 state data indicates a likely revenue miss for operators. While the firm expects revenue growth to moderate in 2026, it believes that the World Cup will provide a necessary boost to online sports betting growth.
DraftKings Inc. (NASDAQ:DKNG) operates as a digital sports entertainment and gaming company in the US and internationally. It provides online sports betting, daily fantasy sports, media, digital lottery courier, and other products.
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Disclosure: None. This article is originally published at Insider Monkey.
