If you’re a sports fan, March means basketball. And if you’re a fan of the sports betting site FanDuel, it’s a good reason to pay attention to the stock of FanDuel’s parent company, Flutter Entertainment (NYSE:FLUT). After tumbling along with most consumer discretionary stocks in February, FLUT stock found support near its November 2024 low.
The stock is still trading right around its 200-day simple moving average (SMA) and near the bottom of its 50-day range, but it is showing a strong set-up backed by analysts who are raising their price targets. This makes FLUT stock a good bet if you’re looking for growth in 2025.
The Leader Is Not Sitting on Its Lead
Flutter Entertainment is the world’s leading online sports betting and gaming operator. The U.K.-based company is best known in the United States for its FanDuel online sportsbook. However, it is also the parent company of several hero brands in other countries.
The company features what it refers to as the Flutter Edge to deliver the right products with the right technology backed by industry-leading expertise, all of which can help the company deliver at scale.
In 2024, the company generated over $14 billion in revenue. That was twice the amount of the company’s nearest competitor in the United Kingdom and three times the revenue of its nearest U.S. competitor, DraftKings (NASDAQ:DKNG). And 60% of the company’s revenue comes from these two countries.
The takeaway for investors is that Flutter holds a dominant position in a competitive sector. However, in the company’s Investor Day presentation in September 2024, Flutter outlined goals that are likely to keep it in the lead for years to come. Those goals include:
- Revenue of $ 21 billion by 2027 – that would be a compound annual growth rate of approximately 14%.
- 25% growth in adjusted EBITDA margin, which is about 700 basis points of margin expansion.
- Free cash flow of $2.7 billion by 2027 – that would represent approximately 36% compound growth.
- Up to $5 billion in capital returns in the next three to four years.
The company has also suggested that a strong balance sheet could lead to more growth through acquisition.
One of the Most Wonderful Times of the Year for Sports Betting
In 2025, an estimated $3.1 billion is expected to be wagered on the NCAA Men’s and Women’s basketball tournaments. To put that into perspective, that’s about 25% of the revenue that Flutter generates every year. This year, betting on college basketball is getting an additional boost from a new tournament, The Crown, which will host a 16-team field between March 31 and April 6.
Some Headwinds Are Still in Place
If you’re looking for revenue growth from more states legalizing sports betting, you’re likely to be disappointed. As of March 2025, 38 states have legalized sports betting.
However, FanDuel is currently only licensed in 23 states. And in 2025, not much is scheduled to change. Notably, online sports betting will remain out of play in Texas and California, which are the two biggest prizes left on the map.
However, Missouri, which passed Amendment 2 in November 2024, is expected to join the group this year. Flutter estimates it will spend around $80 million to support the launch of its services in the state, which is expected to take place in the fourth quarter.
Analysts Are Bullish on FLUT Stock
As of March 18, 2025, Flutter stock is trading at $235.46. That’s a 32% discount to the Flutter Entertainment analyst forecast on MarketBeat, which gives FLUT stock a consensus price target of $311.41. Two analysts, UBS Group and Macquarie, give the stock a price target of $340, which is nearly 10% higher than the consensus price.