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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