Citi cuts DraftKings price target to $29, citing margin volatility ahead of Q1 earnings.

Citi analyst James Hardiman lowered DraftKings' price target from $32 to $29 while maintaining a Buy rating ahead of the company's May 7 earnings report. The cut reflects concerns about sportsbook margin volatility and costs related to expanding new product lines, amid a mixed outlook for the gaming sector. Despite a 32% year-to-date stock drop and softer Q1 revenue estimates, Citi's Buy rating signals confidence in DraftKings' long-term growth potential, especially in iGaming and its Predictions platform. Investors should expect possible short-term volatility due to unpredictable sports outcomes and investment spending.