Bank of America upgrades DraftKings to Buy, shares jump
Bank of America raised its rating on DraftKings from Neutral to Buy on October 5, 2026. The upgrade sent the stock up roughly 5% to 8% in one day. Analyst Julie Hoover kept a $27 price target, implying about 45% upside. BofA highlighted a potential $400 million in prediction‑market fees by 2027 and noted Q2 adjusted EBITDA of $115 million with full‑year revenue guidance of $6.5 billion‑$6.9 billion.
Why it matters
Bank of America says the forecasted $400 million in prediction‑market fees could boost DraftKings' earnings outlook, supporting the upgraded rating. The analyst upgrade also triggered an immediate share price increase, providing short‑term upside for investors.
Key facts
- 1Bank of America upgraded DraftKings from Neutral to Buy on October 5, 2026. finance.yahoo.com
- 2Shares rose about 5% after the upgrade. finance.yahoo.com
- 3Analyst Julie Hoover kept a $27 price target, implying roughly 45% upside. finance.yahoo.com
- 4BofA estimates prediction‑market fees could reach $400 million by 2027. finance.yahoo.com
- 5Q2 adjusted EBITDA was $115 million. finance.yahoo.com
- 6Full‑year revenue guidance remains $6.5 billion to $6.9 billion. finance.yahoo.com
Open questions
- Share price increase reported as 5% in material 1 and more than 8% in material 3.
Summary written by AlphAI from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.