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Berenberg Capital Markets is optimistic on the state of DraftKings ‘ future despite a recent pullback in the stock. The investment firm upgraded shares to a buy rating from hold. However, analyst Jack Cummings lowered his price target for the stock to $43 from $45. This revised price forecast still calls for upside of nearly 27% from here. Shares of DraftKings have shed 9% this year, but have plunged 30% since the end of August due to fears that the booming prediction market business could steal market share from DraftKings and other sports betters. Cummings said that despite these potential risks, no impact on numbers has materialized so far. DKNG YTD mountain DKNG YTD chart “Also, there is still opacity as to how much crossover there is with legal betting markets and customer databases, and the legality of the product is far from certain,” he added. “DraftKings has sold off materially following the threat of disruption from prediction markets and given the group lacks international exposure it has been most affected. With the shares having sold off by +20% in the past 10 days due to the threat of disruption from prediction markets, we think the move is overdone and sit with 30% upside to our new $43.00 price target.” Underscoring the stock is a fundamentally sound business strategy, the analyst added. “While numbers have been adjusted downwards due to sports results, the company has continued to deliver solid levels of growth and its underlying business has delivered improvements particularly in terms of margin expansion,” Cummings continued. As the market matures, Cummings expects DraftKings’ outperformance in the U.S. to continue. Additionally, the company should continue to deliver strong profit growth over the coming years. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
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