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.DraftKings shares fall after Hindenburg discloses short position |  Financial Times

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.