Wolfe Research Initiates Coverage of DraftKings (DKNG) at Outperform
Fintel reports that on September 2, 2026, Wolfe Research initiated coverage of DraftKings (NASDAQGS:DKNG) with a Outperform recommendation.
On September 2, 2026, DraftKings' stock closed at $24.21, following a pre-action close of $23.44 on September 1, 2026. Over a one-week period starting from a baseline close of $24.78 on August 26, 2026, the stock price decreased by 2.30%. Looking back one month from a baseline close of $23.48 on July 31, 2026, the stock price increased by 3.11%.
DraftKings Inc. is an American company based in Boston, Massachusetts, primarily engaged in the digital sports entertainment and gaming industry. It offers a broad spectrum of sports betting and gaming technologies that support daily fantasy sports, sports betting, and iGaming opportunities. The company operates through an online platform and focuses on merging technology, sports entertainment, and regulated betting. One of its key projects includes the continuous enhancement of its proprietary sports betting engine, which integrates with third-party sports feeds and customer interaction tools.
The company recently reported its quarterly earnings on August 6, 2026. DraftKings posted an actual EPS of -$0.14, compared to the analyst estimate of $0.0171, representing a negative earnings surprise of -918.71%. Revenue for the quarter was $1,443,235,000, falling short of the estimated $1,542,885,619.
Prior to Wolfe Research's initiation, the consensus target price for DraftKings was recorded at $34.99 as of August 29, 2026, representing a 0.27% decrease from the prior consensus target mean of $35.08 on August 4, 2026. The August 29 consensus target mean of $34.99, with a median of $33.15, implied a potential change of +44.52% relative to the stock's valuation at that time.
As of September 1, 2026, the aggregate analyst recommendation profile consisted of 10 strong buy, 25 buy, 9 hold, 1 sell, and 0 strong sell recommendations, totaling 45 active recommendations. This distribution represents 77.8% positive, 20.0% hold, and 2.2% negative recommendations, which remained unchanged from the prior recommendation period on August 1, 2026.
Other financial institutions have also recently maintained their outlooks on DraftKings. On August 11, 2026, both Macquarie and Citigroup maintained their respective ratings of Outperform and Buy. On August 10, 2026, JP Morgan maintained its Overweight rating, Guggenheim maintained its Buy rating, and Barclays maintained its Overweight rating. Additionally, Benchmark maintained its Buy rating on August 7, 2026.
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This story originally appeared on Fintel.