Analyst James Wheatcroft of Jefferies maintained a Buy rating on Flutter Entertainment PLC, retaining the price target of p28,400.00.
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James Wheatcroft has given his Buy rating due to a combination of factors that influence Flutter Entertainment PLC’s market position and future prospects. Despite the negative implications of the UK Budget on gaming taxes, which could potentially reduce the Group’s EBITDA by an estimated 12%, Wheatcroft believes that Flutter Entertainment has the capacity to mitigate approximately half of this tax impact.
Furthermore, investor discussions indicate that the market had anticipated a tax rate of 25%-30% for both sports and casino sectors. Wheatcroft assumes that the share prices might initially react negatively to the higher-than-expected 35% blended rate. However, the company’s ability to offset a significant portion of the tax burden and its strong market presence supports his Buy rating.
In another report released on November 24, HSBC also upgraded the stock to a Buy with a $228.00 price target.