Benchmark lowered its price target on DraftKings Inc. (NASDAQ: DKNG) to $43.00 from $53.00 while maintaining a Buy rating.

Analysts said they remained constructive on the company's long-term growth opportunity, underpinned by its strong product, expanding user base, and industry tailwinds. However, they flagged potential near-term headwinds in the third quarter from unfavorable sports outcomes, elevated promotional spending, and a challenging macro backdrop.

Benchmark also noted investor sentiment had been shaken by the rise of prediction markets, despite little evidence of a direct business impact. The firm said it expected these factors to weigh on valuation in the near term but maintained its long-term bullish view, advising investors to be opportunistic when market weakness subsides.