Analysts remain somewhat bullish on DraftKings, with 16 of 32 having a Buy or Strong Buy rating and 13 having Hold ratings. At a share price of around $16.50, the upside potential based on a median price target of $19.50 is 18.2%. At the high target of $48.00, the upside potential is nearly 200%.
Fourth-quarter revenue is forecast at $797.71 million, up 59.0% sequentially and by 68.6% year over year. Analysts forecast a loss per share of $0.49 in the quarter, compared to a prior quarter loss of $0.97 and a year-ago loss of $0.79 per share. For the full 2022 fiscal year, DraftKings is expected to post a per-share loss of $2.51, better than the $3.69 loss per share in 2021. Sales are forecast to rise 68.1% year over year to $2.18 billion.
DraftKings is not expected to post a profit in 2022, 2023 or 2024. The stock trades at a multiple of 3.4 times estimated 2022 enterprise value to sales, 2.5 times the estimated 2023 estimated sales of $2.91 billion and 2.1 times estimated 2024 sales of $3.57 billion. The stock’s 52-week range is $9.77 to $425.01. The company does not pay a dividend. The total shareholder return for the past year was negative 25.23%.
Vale
Over the past 12 months, shares of Brazilian iron ore miner Vale S.A. (NYSE: VALE) have declined by about 4%, despite a boost of more than 23% over the past six months. Vale reports quarterly earnings on Thursday.
When the company reported production for December, totals were down 10% sequentially and 1% year over year. Automaker GM has discussed taking a stake of up to 10% in Vale’s base metals mining unit, an investment valued at up to $2 billion, according to a report in The Wall Street Journal. GM and other electric vehicle makers would be most interested in guaranteeing supplies of nickel and other metals used in their EV batteries.
Of 13 analysts covering the stock, nine have a Buy or Strong Buy rating and the others have Hold ratings. At a share price of around $17.00, the implied gain based on a median price target of $19.50 is 14.7%. At the high price target of $24.00, the upside potential reaches 41.2%.
Fourth-quarter revenue is forecast at $11.39 billion, up 14.7% sequentially but 8.9% lower year over year. Adjusted EPS are forecast at $0.57, down 46.0% sequentially and by 48.6% year over year. For the full 2022 fiscal year, analysts expect EPS of $3.61, down 19.2%, on sales of $43.47 billion, down 20.2%.
Vale stock trades at 4.6 times expected 2022 EPS, 5.7 times estimated 2023 earnings of $2.90 and 8.8 times estimated 2024 earnings of $1.91. The stock’s 52-week range is $11.72 to $21.29. The company pays an annual dividend of $0.74 (yield of 4.48%). Total shareholder return for the past 12 months was 6.3%.
Originally published at 24/7 Wall St.
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