In a report released today, Bernie McTernan from Needham maintained a Buy rating on Flutter Entertainment PLC (FLTR – Research Report), with a price target of $310.00.
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Bernie McTernan has given his Buy rating due to a combination of factors related to Flutter Entertainment PLC’s strategic response to the proposed transaction tax in Illinois. The company announced its intention to pass the $0.50 transaction tax onto consumers, which is a direct approach to maintaining margins despite the tax’s potential to increase their effective tax rate in the state to over 50%.
Given Flutter’s significant market share in Illinois, alongside DraftKings, this move is seen as a strategic alignment with industry practices, especially since DraftKings attempted a similar surcharge previously. The potential for industry unification on passing the transaction tax to consumers could stabilize market dynamics and protect margins. Additionally, Flutter’s proactive stance and market influence suggest a strong position to navigate these regulatory challenges, supporting the Buy recommendation.
According to TipRanks, McTernan is a 4-star analyst with an average return of 4.4% and a 49.08% success rate. McTernan covers the Consumer Cyclical sector, focusing on stocks such as Flutter Entertainment PLC, DraftKings, and Rush Street Interactive.