Wells Fargo flipped ratings on DraftKings (DKNG) and Flutter Entertainment (FLUT) on Thursday as it sees better near-term upside for DraftKings (DKNG) on the expectation of a strong Q4 earnings report.
Analyst Trey Bowers and his team expect DraftKings (DKNG) to exceed the implied high-end of its Q4 guidance of $273M. By contrast, Flutter Entertainment’s (FLUT) lower handle growth and higher promotional activity are expected to lead to an earnings disappointment.
Following the ratings reset, DraftKings (DKNG) is now slotted at Overweight at Wells Fargo, while Flutter Entertainment (FLUT) was dropped to Equalweight. Wells Fargo’s price target on DKNG of $49 represents 40% upside potential. The price target of $228 on FLUT represents 12% upside potential.
Shares of DraftKings (DKNG) were up 1.3% in premarket trading to $34.77. Flutter Entertainment (FLUT) dipped 0.3% to $199.85.