On Tuesday, shares of DraftKings plummeted more than 4% after Roth Capital predicted the business will miss third-quarter results.
At lunchtime, DraftKings shares are trading at $46.82.
When the firm releases its earnings on Friday, Roth Capital analyst Edward Engel wrote in a research note that it is "becoming increasingly evident" that the company is on track for a Q3 shortfall and "underwhelming" 2021 expectations.
Flutter Entertainment's quarterly report, as well as net gaming revenue across U.S. states in September, bolstered Engel's case. According to him, the company's "seasonally worst quarters from a market share viewpoint" are the third and fourth quarters.
Despite Wall Street analysts decreasing their Q4 predictions for DraftKings, Engel maintains a $41 price target and a sell rating on the stock.
Morgan Stanley analyst Thomas Allen, meanwhile, has resumed coverage of DraftKings, giving it an equal weight rating. Allen established a $53 price target for the company, citing a "balanced catalyst path" in the immediate to mid-term.