Market sentiment toward sports betting operator DraftKings has improved significantly following a period of turbulence. The shift is driven by analysts upgrading their assessments after robust performance in the company’s online casino segment, with many now identifying substantial upside potential for the stock.
A Remarkable Reversal from Recent Lows
This optimistic reassessment marks a notable turnaround. As recently as November 2025, DraftKings stock was trading near its 52-week low of approximately $29.27. That decline occurred after management revised its guidance due to unfavorable odds in the sports betting business. The current analyst consensus, which envisions nearly a doubling from those lows, suggests the earlier sell-off was an overreaction. The market is now looking beyond short-term fourth-quarter volatility and focusing on the anticipated structural profitability for the 2026 fiscal year.
Should investors sell immediately? Or is it worth buying DraftKings?
iGaming Emerges as a Core Growth Driver
The primary catalyst for renewed confidence is the iGaming segment, which encompasses online casino operations. In the third quarter of 2025, revenue in this division grew by 24.9% year-over-year. This performance has been persuasive for market experts, demonstrating that DraftKings is not solely reliant on the more volatile sports betting market. iGaming is viewed as a more stable and higher-margin growth engine. A consolidated view from 29 researchers now yields an average price target of $55.07, a clear signal of confidence in the company’s diversification strategy.
Key Catalysts and Forthcoming Challenges
The next significant milestone will be the fourth-quarter 2025 report, expected in early 2026. Investors will scrutinize whether the momentum in the iGaming business persisted through December. Furthermore, a classic volume driver for the sportsbook is on the horizon: Super Bowl LIX in the spring of 2026. The combination of steady casino revenue and high betting volumes during major sporting events could provide the foundation needed to reach the targeted share price. The market appears to be pricing in this balanced outlook, where iGaming stability helps mitigate the inherent unpredictability of sports betting results.
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