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On Friday, Benchmark analysts maintained their optimistic stance on Flutter Entertainment (NYSE:FLUT), reiterating a Buy rating and a $300.00 price target for the company’s shares. With a market capitalization of $41.94 billion and a strong analyst consensus rating of 1.46 (Strong Buy), InvestingPro analysis suggests the stock is currently trading below its Fair Value. This affirmation comes despite Flutter Entertainment’s first quarter results falling short of market expectations, with both revenue and Adjusted EBITDA (AEBITDA) coming in under consensus. While the company generated $2.06 billion in EBITDA over the last twelve months, the underperformance was attributed to weaker U.S. sports betting outcomes and foreign exchange headwinds. InvestingPro data reveals 11 additional key insights about Flutter’s financial health and growth prospects.
Flutter Entertainment, however, is noted for its strong operational momentum, especially in the U.S. market. The company’s engagement levels and structural margin trends in the U.S. are reportedly in good health, supported by impressive revenue growth of 16.68% over the last twelve months. Management has responded to concerns about decelerating handle growth by focusing on customer retention, product mix, and improvements in long-term hold as key drivers of revenue, with analysts forecasting 28% revenue growth for FY2025.
The company’s leadership has also confirmed their confidence in the U.S. market, stating that no state is showing signs of market maturity. They emphasized that Flutter Entertainment’s strategy will continue to prioritize product-led growth and cost efficiency. Despite the challenges faced, the company has raised its full-year revenue guidance significantly, although the increase in AEBITDA guidance was modest and still below consensus, reflecting the ongoing impact of foreign exchange rates and mergers and acquisitions. For a comprehensive analysis of Flutter Entertainment’s growth prospects and financial health metrics, access the detailed Pro Research Report available on InvestingPro.
This update from Benchmark comes amidst a backdrop of fluctuating market conditions, with companies in the online betting and gaming sectors facing various challenges. Flutter Entertainment’s efforts to adapt to these challenges and its reaffirmed growth strategy have been crucial factors in maintaining the confidence of analysts at Benchmark.
In other recent news, Flutter Entertainment reported its first-quarter 2025 earnings, missing both earnings per share and revenue forecasts. The company reported an EPS of $1.59, falling short of the expected $2.05, and revenue of $3.67 billion, below the forecasted $3.96 billion. Despite these results, U.S. revenue grew by 18% year-over-year, indicating strong performance in that segment. Flutter also announced a share buyback program, aiming to enhance shareholder value, although specific financial details were not disclosed.
Additionally, Flutter completed strategic acquisitions in Italy and Brazil, which are expected to contribute to future growth. Analyst firms Stifel and JMP Securities maintained their positive outlook on Flutter, with Stifel keeping a Buy rating and a $315 price target, while JMP Securities retained a Market Outperform rating with a $317 target. These ratings come despite the company’s adjusted EBITDA falling short due to adverse sports outcomes and international market challenges.
Flutter’s management highlighted the introduction of significant product innovations, such as "Your Way" pricing technology, and emphasized the potential for further expansion in the U.S. market. The company’s FY25 guidance was revised upward, factoring in contributions from recent acquisitions and favorable foreign exchange movements. Despite the challenges, analysts see potential for positive adjustments in future estimates, driven by user acquisition and structural hold momentum in the U.S.
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