BUZZ-TD Cowen cuts DraftKings PT on taxes, potential gambling losses
TD Cowen cuts PT on online sports betting giant DraftKings DKNG.O to $51 from $55, citing tax headwinds and potentially elevated gambling losses
Brokerage says tax hikes on gross gaming revenue could affect margins
Says same game parlays (SGPs) introduce volatility for operators in periods of adverse outcomes
DraftKings is a leading promoter of SGPs, which allow bettors to combine multiple bets into high payout opportunities
"The potential for a single bad Sunday in 2025 featuring high-scoring games, numerous touchdowns, and an abundance of winning prop overs could easily translate into a significant loss for operators in a single day," brokerage says
New PT is a 23.2% upside to stock's last close
DKNG set to release its Q4 earnings next week
Thirty-two of 37 brokerages rate stock "buy" or higher, and 5 "hold"; median PT is $53 - data compiled by LSEG
Stock rose 5.5% in 2024
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