Proactive Investors - Draftkings Inc (NASDAQ:DKNG) has announced several changes to its senior leadership team which have been viewed as positive by analysts at Jefferies.
The fantasy sports contest and sports betting company has appointed its current chief financial officer Jason Park as chief transformation officer, effective May 1, 2024. In this role, he will lead initiatives to deploy new technologies to drive operating improvement and oversee the integration of Jackpocket, a leading lottery app in the US being acquired by DraftKings (NASDAQ:DKNG) for $750 million.
“Our impression is that Jason Park has experience with operational roles before, and given the timing of the pending Jackpocket acquisition, the transition seems appropriate,” the Jefferies analysts wrote.
DraftKings’ Senior Vice President of Finance and Analytics Alan Ellingson will take on the role of chief financial officer, also effective May 1, 2024.
“He has been with the company since 2020 and our impression is that he has been heavily involved in building the company's guidance and long-term forecasts, which implies there should be no shift in philosophy or outlook, despite limited Street-facing engagement,” the analysts wrote.
As such, they reiterated their first quarter fiscal 2024 revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) estimates of $1.116 billion and $2.6 million, respectively.
The analysts have a ‘Buy’ rating on the stock and a $52 price target, representing an upside of 19% to DraftKings’ share price at the time of writing of $43.52.
“Our view remains that DraftKings is a leader in the digital space and will maintain its approximate share levels despite increasing competition and market evolution,” they wrote.
“We believe the evolution of existing markets coupled with further legalizations over time and the Jackpocket acquisition as an incremental positive, all suggest that estimates should continue to progress higher over time, with the stock moving commensurately.”