In a report released today, Shaun Kelley from Bank of America Securities reiterated a Hold rating on Flutter Entertainment PLC, with a price target of $250.00.
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Shaun Kelley has given his Hold rating due to a combination of factors impacting Flutter Entertainment PLC’s financial outlook. The company reported mixed results for Q3, with revenue and EBITDA slightly above expectations, but a notable reduction in full-year EBITDA guidance by 12%. This adjustment reflects increased spending on prediction markets, which is significantly higher than anticipated, and suggests a challenging investment phase ahead.
Additionally, the US market presents further challenges with a lowered EBITDA outlook due to unfavorable sports results and increased investment needs. The competitive landscape is intensifying, particularly with FanDuel’s strategic moves in prediction markets, which could pressure margins and profitability. These elements contribute to a cautious stance, justifying the Hold rating as the company navigates through these competitive and financial pressures.
According to TipRanks, Kelley is a 3-star analyst with an average return of 2.1% and a 49.85% success rate. Kelley covers the Consumer Cyclical sector, focusing on stocks such as MGM Resorts, Vail Resorts, and DraftKings.
In another report released on November 5, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $234.00 price target.