On Tuesday, BTIG reiterated its Buy rating on Flutter Entertainment (NYSE:FLUT) stock with a steady price target of $245.00. The firm's stance comes in anticipation of the company's earnings report, which is expected to be released Tuesday evening.
BTIG's analysis suggests a favorable outlook for Flutter's second quarter of 2024, although it notes potential market movements due to the UK MSCI exclusion that could dampen share price gains.
The firm addressed key issues surrounding tax surcharges, a hot topic since DraftKings (NASDAQ:DKNG)' recent earnings report. BTIG anticipates that Flutter Entertainment might opt out of tax surcharge inclusion for the time being.
This decision is believed to be influenced by possible challenges to market share and the total addressable market (TAM) growth. Nonetheless, implementing such tax policies could significantly reduce the risk of other states adopting similar measures, as seen with Illinois.
BTIG highlighted Flutter's position as one of its top picks, underscoring its strong fundamentals. The firm's commentary suggests confidence in Flutter's current trajectory and its ability to navigate the evolving regulatory landscape. Despite the potential for pre-earnings trading activities and index-related headwinds, BTIG's outlook for Flutter remains positive.
Investors are monitoring Flutter Entertainment closely as it prepares to disclose its financial performance. The market is expected to react to the forthcoming earnings report, providing further insight into the company's recent operations and future prospects. BTIG's analysis serves as a precursor to the anticipated financial disclosure.
InvestingPro Insights
As Flutter Entertainment (NYSE:FLUT) gears up for its earnings report, real-time data from InvestingPro provides additional context for investors. The company boasts a market capitalization of $32.02 billion, reflecting its significant presence in the industry. Despite not being profitable over the last twelve months, analysts are optimistic, predicting profitability for the company this year. This aligns with BTIG's positive stance on the stock.
InvestingPro data shows a robust revenue growth of 19.29% over the last twelve months as of Q1 2024, which may be a key factor in BTIG's analysis and the firm's expectation of a strong earnings report. Additionally, the company's EBITDA has grown by a noteworthy 64.21% in the same period, indicating efficient operations and potential for future profitability.
Moreover, two analysts have revised their earnings upwards for the upcoming period, as per InvestingPro Tips, signaling confidence in Flutter's financial trajectory. However, it's important to note that short-term obligations exceed liquid assets, which could be a point of concern for some investors. Those interested in a deeper dive into Flutter's financial health can find more InvestingPro Tips at https://www.investing.com/pro/FLUT, which includes a total of 9 additional tips to help evaluate the company's investment potential.
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