DAVY VIEW

Our new DraftKings forecasts for 2026 and 2027 indicate 12% and 13% revenue growth respectively. DraftKings is sustainably cash generative, and the US market is not yet mature. There are a number of factors that underpin revenue growth and operating leverage through the forecast horizon. We also believe that the ‘big two’ operators in the US can leverage their brand equity, consumer offering and technology to compete in prediction markets in unregulated states. As a result, we believe the de-rating has been too severe and we move to ‘Outperform’.