Stifel's analysts also note that despite Flutter's outperformance in the prior year, the company's valuation remains attractive when compared to historical and internet company comparables. They see more potential for positive catalysts, such as consensus upgrades, inclusion in the S&P 500, and state market expansion, than negative impacts from potential tax increases or regulatory changes.
InvestingPro analysis shows the stock trading near its Fair Value, with analyst targets ranging from $250 to $367. For deeper insights into Flutter's valuation metrics and 12 additional ProTips, including detailed financial health scores and comprehensive analysis, subscribers can access the full Pro Research Report on InvestingPro. InvestingPro analysis shows the stock trading near its Fair Value, with analyst targets ranging from $250 to $367.
For deeper insights into Flutter's valuation metrics and 12 additional ProTips, including detailed financial health scores and comprehensive analysis, subscribers can access the full Pro Research Report on InvestingPro. Stifel predicts a robust free cash flow (FCF) growth for Flutter, with an estimated compound annual growth rate (CAGR) of approximately 56% from 2024 to 2027.
Stifel's analysts also note that despite Flutter's outperformance in the prior year, the company's valuation remains attractive when compared to historical and internet company comparables. They see more potential for positive catalysts, such as consensus upgrades, inclusion in the S&P 500, and state market expansion, than negative impacts from potential tax increases or regulatory changes.
InvestingPro analysis shows the stock trading near its Fair Value, with analyst targets ranging from $250 to $367. For deeper insights into Flutter's valuation metrics and 12 additional ProTips, including detailed financial health scores and comprehensive analysis, subscribers can access the full Pro Research Report on InvestingPro.
While acknowledging that Flutter's leading market positions are not entirely unassailable due to the risks associated with rapid mergers and acquisitions and diversification, Stifel points out the significant scale advantages in the online sports betting and iCasino sectors. These advantages are particularly influential as the industry shifts towards a more recreational and price-insensitive customer base.
Stifel's analysts also note that despite Flutter's outperformance in the prior year, the company's valuation remains attractive when compared to historical and internet company comparables. They see more potential for positive catalysts, such as consensus upgrades, inclusion in the S&P 500, and state market expansion, than negative impacts from potential tax increases or regulatory changes.
In other recent news, DraftKings (NASDAQ:DKNG) and Flutter Entertainment face potential tax hikes in Maryland, as the state's newly proposed budget aims to increase sports wagering and table game tax rates. This proposal is part of a broader tax reform effort and could affect the operational costs of these companies.
Meanwhile, Flutter Entertainment experienced unfavorable NFL sports outcomes, which led to a significant financial impact. The company reported a $438 million hit to its Gross Gaming Revenue (GGR), prompting downward revisions in its 2024 US revenue projections and Adjusted EBITDA expectations.
Susquehanna maintained a positive rating on Flutter Entertainment but reduced its price target from $322.00 to $317.00. This adjustment followed less favorable NFL sports hold trends, particularly in December, impacting the company's fourth-quarter estimates for FanDuel, its U.S. business segment. Benchmark analysts also maintained a Buy rating for Flutter Entertainment, despite the company's recent challenges.
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