Maintaining a Buy Rating on DraftKings Amid Elevated Risks

about 5 hours ago

Parkev Tatevosian, CFA

"I had DraftKings stock rated as a buy this year. I had it rated as one of the best stocks to buy for about the first seven months of the year. And as I noticed the share price had increased and then competition was increasing. I took it off of my list of best stocks to buy and I downgraded it to just a buy. Now, as I'm following further, I'm still keeping it rated as a buy to answer the question I posed in the introduction of the video. I still keep it rated as a buy, but now it's getting closer and closer to another downgrade where I will bring it down to a hold. I'm not doing that just yet. I'm keeping a close eye on how these markets are developing."

The speaker acknowledges that DraftKings remains undervalued based on an intrinsic value calculation, but emphasizes that increased competition and evolving market dynamics are elevating risk. Although he maintains a buy rating for now, he warns that the stock could be downgraded to hold if the risks continue to mount.

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