Bank of America upgrades DraftKings to Buy with $27 target, citing prediction‑market upside
On October 5 2026 Bank of America raised DraftKings Inc. (DKNG) from Neutral to Buy and set a $27 price target. Analyst Julie Hoover highlighted a potential $400 million in prediction‑market fees by 2027 and a revised EBITDA outlook of $500 million for 2026 and $1.15 billion for 2027. The upgrade sparked a pre‑market rally of roughly 5‑8%, pushing the share price above $19.
Why it matters
BofA’s upgrade suggests a more favorable risk‑reward profile and a new revenue stream, which could lift the stock toward the $27 target, implying about 40% upside (BofA’s own estimate). The revised EBITDA forecasts also raise expectations for future earnings.
Key facts
- 1Bank of America upgraded DraftKings from Neutral to Buy on October 5 2026. gurufocus.com
- 2The firm set a price target of $27, implying over 40% upside. gurufocus.com
- 3Shares rose 4.9% in pre‑market trading to $19.51 after the upgrade. gurufocus.com
- 4BofA forecasts $400 million in prediction‑market fees by 2027. proactiveinvestors.com
- 5Adjusted EBITDA was lowered to $500 million for 2026. proactiveinvestors.com
- 6Adjusted EBITDA was raised to $1.15 billion for 2027. proactiveinvestors.com
Summary written by AlphAI from 19 of 19 sources. Not investment advice. Figures are as stated by the linked sources.