DraftKings (DKNG) shares opened lower on Monday morning as Wall Street firms reassessed the online betting giant following its latest earnings release and sharply reduced guidance. JPMorgan, for example, downgraded DKNG today to “Neutral” and trimmed its price target to $21, which nonetheless represents about a 13% upside from current levels.
DraftKings stock has been a disappointment for investors in 2026, as it is currently trading at roughly half its price at the start of this year.
Why JPM Downgraded DraftKings Stock
JPM’s senior analyst Daniel Politzer removed DKNG stock from the firm’s Analyst Focus List on Nov. 9, primarily because he no longer sees a compelling risk-reward profile. For Politzer, the key issue is declining confidence in the company’s ability to achieve its 2027 and 2028 EBITDA targets.
He admitted that slowing growth in online sports betting and iGaming is expected as the market matures but also said competition is becoming increasingly aggressive as operators lean more heavily on promotions and incentives to drive customer activity. That could force DraftKings to rely more on marketing efficiencies and expense controls to reach its profitability goals.
For its dovish view, JPMorgan also cited risks tied to DKNG’s investments in prediction markets, a business that remains subject to significant regulatory uncertainty.
Q3 Earnings Warrant Caution in Playing DKNG Shares
Crucially, JPM isn’t the only Wall Street firm recommending caution in playing DraftKings shares at current levels.
Analysts at peer firms UBS and Stifel have also issued bearish research notes on the Nasdaq-listed firm following its disappointing Q3 earnings last week.
On Nov. 5, management reported a wider-than-expected per-share loss of $0.21 and lowered its sales guidance for the full year as well.
What’s the Consensus Rating on DraftKings?
Heading into today, Wall Street analysts had a consensus “Moderate Buy” rating on DKNG shares — with a bullish price target of about $32.
However, it’s reasonable to expect downward revisions like those of JPM, UBS, and Stifel as firms continue to bake in DraftKings’ trimmed guidance and industry challenges into their estimates in the weeks ahead.
On the date of publication, Wajeeh Khan did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.