DraftKings (NASDAQ:DKNG) experienced a dip in premarket trading on Friday following its Q4 revenue report, which showed a 44% increase in revenue but slightly missed estimates.

Bank of America’s Strong Endorsement

Bank of America’s analyst, Shaun Kelley, voiced confidence in DraftKings (DKNG) despite the unexpected Q4 results. Kelley asserted that the fundamentals remain strong and sees potential for improved structural hold over time. Regarding the M&A deal for Jackpot, Kelley highlighted the promising opportunity it presents in untapped markets like Texas where online sports betting is not yet legal. BofA reiterated a Buy rating with a price objective of $50.

Jefferies’ Cautious Expectations

On the other hand, Jefferies analyst David Katz expressed cautious optimism. While recognizing DraftKing’s secure position in the market, Katz anticipated that the acquisition announcement might exert a slight downwards pressure on the stock.

Macquarie’s Encouraging Insight

Meanwhile, Macquarie analyst Chad Beynon provided a positive interpretation of DraftKings’ Q4 report. Beynon accentuated the company’s surging profitability despite adjusting for Q4 hold from favorable sports outcomes. The firm maintained an Outperform rating on DKNG.

Seeking Alpha analysts also hold a consensus Buy rating on DKNG.

During premarket trading, shares of DraftKings (DKNG) were down 5.60%, reaching $41.97.