Morgan Stanley has released a new evaluation of DraftKings, suggesting that the sports betting company, which is reportedly interested in Railbird, a prediction market platform, is on track to significantly exceed its $225 million EBITDA in Q2 2025.
DraftKings’ EBITDA Forecasts Stronger Than Expected
This amount already surpasses DraftKings’ own projection of $200 million, but Morgan Stanley estimates the numbers to be much higher. Analysts predict that DraftKings’ EBITDA could be closer to $260 million than any other estimate.
The investment bank notes that DraftKings has experienced strong and consistent growth in net gaming revenue nationwide, with the company’s stock climbing 17%, outperforming most other S&P 500 companies.
DraftKings still faces challenges, such as a new betting tax in Illinois and initial launch costs in Missouri, but the company is expected to continue delivering on its projections and surpass initial estimates, despite necessary adjustments due to regulatory changes.
Analyst Consensus Puts DraftKings as Buy
Another positive for DraftKings is its performance in the iGaming sector, where Morgan Stanley highlights strong operational results. DraftKings’ investment focus on digital over physical locations has been advantageous, as land-based operations face mixed outcomes, partly due to decreased travel.
Morgan Stanley is not alone in its assessment. Citi has also maintained its Strong Buy rating for DraftKings, which has been steadily increasing in recent weeks.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com