Analyst Ben Shelley from UBS reiterated a Buy rating on Flutter Entertainment PLC and decreased the price target to $320.00 from $340.00.
Claim 70% Off TipRanks This Holiday Season
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Ben Shelley has given his Buy rating due to a combination of factors influencing Flutter Entertainment PLC’s outlook. The recent alleviation of UK tax risks, which had been a significant concern for investors, allows the company to refocus on its growth potential. Shelley sees a potential for multiple expansion as the uncertainty surrounding earnings diminishes, and he remains confident in the company’s FY27 EBITDA target, supported by favorable foreign exchange movements and new market opportunities like Missouri and FanDuel Predicts.
Additionally, the UK iGaming market presents an opportunity for Flutter to gain market share, particularly as smaller operators may struggle with increased gaming taxes. This could lead to industry consolidation, benefiting larger players like Flutter. Despite some cuts to earnings estimates due to the tax hike, the company’s mitigation strategies and potential market share gains provide a positive outlook. With these factors in mind, Shelley reiterates the Buy rating, seeing value in the stock’s current trading metrics and future growth prospects.
In another report released today, Citi also maintained a Buy rating on the stock with a £244.00 price target.