DraftKings unlikely to double stock price in 2026 but shows modest upside with new Predictions launch.

DraftKings shares have fallen nearly 27% this year but show signs of recovery with a 10% gain last month. The company beat revenue and EBITDA expectations in Q1 2026 but missed EPS due to heavy investment in its new Predictions platform. Analysts are cautiously optimistic, with a 24/7 Wall St. price target of $26.64, implying a 5.3% upside from current levels. The bullish case hinges on successful Predictions launch, expanding margins, and new market entries, while risks include declining user numbers, negative cash flow, and lawsuits. Overall, the stock is a buy with a 90% confidence level, though doubling the stock price in 2026 is unlikely under the base case.