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On Wednesday, Morgan Stanley maintained DraftKings, Inc. (NASDAQ:) with an Overweight rating and $49.00 price target. The company highlighted upcoming management changes, with current Chief Financial Officer (CFO) Jason Park scheduled to assume the role of “Chief Transformation Officer” from May 1, 2024. Alan Ellingson, currently DraftKings' senior vice president of finance and analytics, will be promoted to CFO.
Due to the change in management roles, the Company is expected to focus on implementing new technology and achieving further operational efficiencies. Jason Park's new role will include overseeing the integration of the recently acquired JackPocket Company. Morgan Stanley expects a smooth transition and anticipates potential catalysts for DraftKings stock related to capital allocation and balance sheet optimization.
DraftKings' strategic move comes at a time when other big tech companies are making important capital allocation decisions that are being well-received by the market. Companies like Meta Platforms Inc. (NASDAQ:) Uber Technologies, Inc. . (NYSE:NYSE:) and T-Mobile US Inc. (NASDAQ:) announced stock buybacks or dividends. Morgan Stanley expects DraftKings to provide details on its capital allocation strategy in the second half of 2024.
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