Flutter Entertainment: Near-Term U.S. Softness but Structural Advantages and Valuation Support Long-Term Upside

In a report released yesterday, Ben Shelley from UBS maintained a Buy rating on Flutter Entertainment PLC, with a price target of $300.00.

Ben Shelley’s rating is based on the view that, despite recent U.S. online sports betting softness and reduced near‑term forecasts, Flutter still commands a dominant position in most major regulated online gaming markets. He believes the company’s long‑term growth potential remains compelling, underpinned by ongoing U.S. regulatory expansion opportunities and rising digital penetration across international markets.

While acknowledging that visibility on U.S. sports betting trends is currently limited and that earnings momentum there is uncertain, he highlights that strong iGaming growth, better promotional efficiency, and structural margin gains should support future profitability. At roughly 8x expected FY27 EBITDA with an attractive implied free‑cash‑flow yield, he sees the present valuation as offering substantial long‑term upside, even if share price volatility persists until clearer signs of U.S. earnings stabilisation emerge.

In another report released on February 8, Jefferies also reiterated a Buy rating on the stock with a $380.00 price target.