Benchmark Co. analyst Mike Hickey has reiterated their bullish stance on FLTR stock, giving a Buy rating today.
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Mike Hickey has given his Buy rating due to a combination of factors surrounding Flutter Entertainment PLC’s strategic moves and growth potential. The company’s recent partnership with CME Group to enter the event trading market is a significant step, as it aligns with a regulated framework and leverages CME’s established market infrastructure. This move is expected to open new revenue streams by targeting financial and macroeconomic benchmarks, with a potential launch in 2025.
Additionally, Flutter’s strategy to potentially enter unregulated markets could provide a competitive edge by building a database of potential sports bettors in states where sports betting is not yet legalized. This approach mirrors their successful acquisition strategy with FanDuel and could significantly enhance user acquisition. Furthermore, the potential expansion into sports event contracts and the broader distribution could result in a much larger growth opportunity than currently modeled. The valuation framework, based on a normalized earnings period and a 20x multiple, supports the reiterated price target and Buy rating.
In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $356.00 price target.
Based on the recent corporate insider activity of 54 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.