DraftKings In Strong Financial Position to Gain, Says Morgan Stanley

Morgan Stanley has issued a new assessment of DraftKings’ business, arguing that the sports betting company, which is supposedly making overtures for Railbird, a prediction market platform, is set to far surpass its $225m EBITDA in Q2 2025.

DraftKings’ EBITDA Forecasts Stronger Than Expected

This figure is already higher than DraftKings’ own guidance set at $200m, but Morgan Stanley pegs the numbers much, much higher. Analysts believe that when the numbers are finally crunched, DraftKings’ EBITDA will be closer to $260m than any of the other figures.

According to the investment bank, DraftKings has seen strong and sustained momentum in terms of net gaming revenue all across the United States, with the company’s stock inching up and gaining 17%, much better than most other S&P 500 companies.

While DraftKings still needs to account for some challenges, including a new betting tax regime in Illinois and the initial costs of launching in Missouri, the company is still poised to continue delivering on its forecasts and exceed initial numbers, notwithstanding corrections necessitated by changing regulatory landscapes.

Analyst Consensus Puts DraftKings as Buy

DraftKings’ other reason for optimism is that the company has been delivering in the iGaming sector, where Morgan Stanley says the company is generating strong results from its operations. DraftKings’ decision to invest more heavily in digital rather than physical has been paying off, as land-based properties continue to show mixed signals, not least occasioned by reduced travel.

Morgan Stanley is not the only investment bank to have issued a similar opinion of DraftKings. Citi has also said that it will retain its Strong Buy rating on DraftKings, which has been gaining steadily over the past weeks.