Jefferies analyst David Katz has lowered the target price of DraftKings ( DKNG ) from $44 to $28, while maintaining a buy rating on the stock.

After DraftKings released its third-quarter report, the company updated its model. In a research report, Katz informed investors that the "magnitude of unexpected changes" in the performance guidance put pressure on the stock price.

Jefri believes that there is "uncertainty in predicting the market, and it is very likely to change as an economic model within 24 months." However, DraftKings still believes that there is "unmet demand" in the field of digital gambling in the United States, and is confident that DraftKings possesses "leading capabilities to develop products that can attract customers profitably."

This article was originally published on TheFly.