BMO Capital lowered its price target on DraftKings to $63 from $65 while maintaining an outperform rating and top-pick designation.

The stock currently trades at $30.57, down 17.8% year-to-date and near its 52-week low of $29.64.

The firm cited several near-term challenges facing the sports betting company, including prediction markets, NBA betting scandals, and unfavorable sports outcomes in September.

BMO reduced its third-quarter 2025 revenue estimate by 14% ($200 million) to $1.26 billion due to soft sports outcomes in September. Despite these concerns, the overall analyst consensus remains a Strong Buy, with price targets ranging from $30 to $69.

Despite these headwinds, BMO analyst Brian J. Pitz stated that the long-term opportunity for DraftKings “remains essentially unchanged” and believes that fears around prediction markets are “overblown” given DraftKings’ recent acquisition and the structural advantages of online sports betting. The company is set to report earnings on November 6 and has demonstrated strong revenue growth of 25.8% over the last twelve months.

BMO views DraftKings shares as attractively valued at approximately 12.5 times the company’s estimated 2026 free cash flow, despite potential regulatory threats regarding betting limits and available inventory.