Deutsche Bank Lifts DraftKings Target to $28
Analyst adds prediction markets to valuation model, signalling Wall Street's growing conviction in the vertical.
Deutsche Bank analyst Steven Pizzella raised his DraftKings price target to $28 from a lower figure, incorporating prediction markets into his valuation model for the first time, according to a note published this week and reported by Legal Sports Report.
Why It Matters
Prediction markets have moved from regulatory curiosity to line-item in a major bank's DCF model — a meaningful signal for the iGaming sector. Pizzella's decision to assign standalone value to DraftKings' prediction-market exposure implies Wall Street now treats the vertical as a durable revenue stream rather than a speculative side product. For operators and investors watching the space, that institutional validation could accelerate capital allocation toward prediction-market infrastructure. Gamblers and DFS players should note this also reflects increasing regulatory acceptance, though the legal landscape remains unsettled in several U.S. states.
Context
Prediction markets — where participants stake money on real-world event outcomes including elections, economic data, and sports — have expanded sharply in the U.S. as of mid-2026, with platforms like Kalshi and Polymarket pushing regulatory boundaries alongside traditional sportsbooks. DraftKings has signaled interest in the vertical, and Deutsche Bank's model tweak confirms that analysts now see it as material to enterprise value. The $28 target represents Pizzella's updated view after multiple adjustments to his underlying assumptions, per Legal Sports Report.
What's Next
Watch for DraftKings' next earnings call for management commentary on prediction-market revenue contribution and any licensing updates in contested state jurisdictions. Competing analysts are likely to revisit their own models if DraftKings provides cleaner segment disclosure.
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