Bank of America Securities analyst Shaun C. Kelley outlined a bullish case for DraftKings at the company's investor day, projecting meaningful upside to the sportsbook operator's fiscal 2028 guidance. Kelley expects DraftKings to raise its FY28 revenue forecast to a range of $8.5 billion to $9.1 billion, up from the previously issued $7.1 billion outlook, signaling confidence in the company's core business expansion and new revenue streams.
The analyst's forecast incorporates a significant strategic pivot toward prediction markets, which he projects could represent a $600 billion total addressable market by 2028. Under this scenario, Kelley estimates DraftKings could capture 10-20% of that market, positioning the company to capitalize on an emerging growth category. However, this expansion strategy comes with near-term financial tradeoffs, as Kelley's model assumes EBITDA guidance will be revised downward to $1.5 billion to $1.7 billion due to investments required to build out the prediction market platform.
The analysis reflects a common pattern in growth-stage technology businesses where profitability is subordinated to market share gains in nascent categories. Investors will be watching for management's official guidance updates and capital allocation priorities, particularly regarding how aggressively the company will pursue prediction market penetration relative to near-term earnings.