Sports betting company Draftkings could see strong gains ahead thanks to this year’s Super Bowl betting activity and the Philadelphia Eagles’ victory, according to Bank of America. Compared to last year’s Super Bowl, both FanDuel and New Jersey’s Division of Gaming Enforcement reported a 19% gain in wagering, and GeoComply reported a 14% increase in activity. Analyst Shaun Kelley said that Draftkings, whose shares have risen only around 0.5% over the past 12 months, might be poised to benefit as a result. He expect the company to bring in an additional $20 million to $25 million in EBITDA year on year. “We think the ability to grow double-digits during the biggest event of the year is impressive and could help assuage concerns of slowing handle,” Kelley wrote in a Wednesday note. “In addition to the strong handle growth, we think the books benefitted from the Eagles winning and key players including Saquon Barkley and Travis Kelce staying out of the endzone.” This comes as the company has already seen an acceleration in handle growth in the beginning of 2025. The bank noted that DraftKings’ handle, which represents the amount of money wagered in specific events, went up by an average of 19% in January. That said, Kelley doesn’t believe Draftkings will raise its 2025 guidance to reflect its strong start to the year. “We think DKNG could face > $100M of annualized headwinds from higher taxes in Maryland and Ohio and launch costs in Missouri that are not currently in their 2025 guide,” the analyst also said. “Given regulatory uncertainty, we expect DKNG to reiterate their 2025 guidance and yet factor in specific state tax changes, though they may help quantify or bridge the potential impact.” A majority of analysts on Wall Street are bullish on the name. Out of the 37 analysts covering it, 32 of them have a strong buy or buy rating, while the remaining five have a hold rating, according to LSEG data. Draftkings also has a consensus price target over the next 12 months of nearly $52. That reflects more than 19% upside from Tuesday’s close.
