DraftKings slips after UBS pushes profitability expectation out to 2024

UBS slashes its price target on DraftKings (DKNG -0.5%) as it warns on lower profitability due to the sports betting company's higher spending as it enters new states.
Analyst Robin Farley and team model for bigger EBITDA losses in 2022 and 2023 despite higher revenue projections. Looking even further ahead, UBS thinks DraftKings (NASDAQ:DKNG) will be profitable in 2024.
Shares of DraftKings (DKNG) are down 17% over the last six weeks.
The new UBS price target of $44 on DKNG is about 31% below the old UBS PT and is 33% below the average Wall Street PT.