DraftKings jumps 5% after Bank of America upgrades to Buy with $27 target

Bank of America upgraded DraftKings stock to Buy from Neutral, citing reduced risks from prediction markets and a favorable risk-reward at current prices. DraftKings shares rose 5% following the upgrade, while competitors Flutter Entertainment and MGM Resorts saw minimal movement. Despite weak Q2 results and competition from prediction platforms Kalshi and Polymarket, Bank of America believes analyst estimates for DraftKings are bottoming and the company can grow its prediction market segment, especially during the NFL season. The upgrade signals renewed investor confidence but questions remain about sustained growth and margin impact.

As of Oct 05, 2026 19:51 WIB, DraftKings (DKNG) is trading at USD 19.48 on Pluang, up 4.79% for the day, closely matching the reported 5% rally after Bank of America's upgrade. Meanwhile, MGM Resorts remains flat at USD 30.48 with no change, and Bank of America Corp shares have inched up 0.32% to USD 53.92. DraftKings' market capitalization stands at $9.23 billion, highlighting its significant presence in the consumer cyclical sector.