Stifel: DraftKings is the preferred investment for the second half of the year, with a target price of $50

As the second quarter earnings season kicks off and the second half of the year approaches, Stifel has listed DraftKings as its top pick. Due to the impact of increased taxes in Illinois and Wall Street's downward adjustment to EBITDA, DraftKings has recently experienced a decline. However, analyst Jeff Stantial believes that the stock will rebound. "Looking ahead to the remaining time in 2024, the timetable for legislative sessions/budget discussions suggests that there may be limited incremental catalysts before 2025 - we believe this will shift investors' focus to changes in DraftKings' free cash flow," Stantial and his team believe that healthy core growth drivers will lead to upside, helping to reset expectations, and emphasize that the upcoming capital allocation updates are another positive factor. Stifel has set a target price of $50 for DraftKings