Bank of America downgrades DraftKings and Flutter to Neutral
Bank of America downgraded DraftKings and Flutter Entertainment from Buy to Neutral, citing margin volatility, tax pressures and competition from prediction markets. The bank cut its DraftKings price target to USD 35 from about USD 48 and its Flutter target to USD 250 from about USD 325. Analyst Shaun Kelley said both companies remained operationally well positioned but faced a more challenging outlook.
The downgrades reflect investor concerns about sportsbook margins, tax exposure and competition from prediction markets.