Morgan Stanley analyst Ed Young has maintained their bullish stance on FLTR stock, giving a Buy rating today.
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Ed Young has given his Buy rating due to a combination of factors surrounding Flutter Entertainment’s strategic moves and financial prospects. A key reason is Flutter’s acquisition of Boyd’s 5% stake in FanDuel, which consolidates its ownership to 100% and potentially enhances the company’s valuation by eliminating the discount associated with related-party transactions.
Additionally, the acquisition is expected to yield significant cost savings, estimated at $65 million annually, by reducing market access fees in several states. This reduction in expenses is projected to improve US gross profit margins by 1 percentage point. Furthermore, the potential for continued savings as other market access agreements expire around 2028 adds to the positive outlook for Flutter Entertainment, reinforcing the Buy recommendation.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $330.00 price target.
Based on the recent corporate insider activity of 51 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FLTR in relation to earlier this year.