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On Wednesday, Benchmark analysts increased their price target on Flutter Entertainment (NYSE:FLUT) shares to $300 from the previous target of $275, while reiterating a Buy rating. Currently trading at $266.15, with a market capitalization of $47.46 billion, Flutter shows slight undervaluation according to InvestingPro Fair Value metrics. The adjustment reflects the company’s robust full-year performance for 2024. Analyst targets range from $257 to $367, with a strong consensus recommendation of 1.42 (Buy). Flutter Entertainment reported a 13% year-over-year growth in average monthly players (AMPs) and a 19% increase in revenue, reaching $13.57 billion in the last twelve months. The company’s adjusted earnings before interest, taxes, depreciation, and amortization (AEBITDA) saw a significant rise of 26%, primarily due to the rapid expansion of its U.S. operations. InvestingPro analysis reveals the company maintains a moderate debt level with strong growth momentum, scoring 3.58 out of 5 on price momentum metrics.
The fourth-quarter results of Flutter Entertainment were consistent with the trading update provided on January 7, 2025. The company also introduced its guidance for 2025, which is in line with market expectations and the insights shared during its Investor Day. InvestingPro subscribers have access to over 10 additional exclusive ProTips and comprehensive financial analysis, including detailed revenue forecasts and profitability metrics for the upcoming year. This forward-looking estimate takes into account the varied sports results from 2024, which had a negative impact in the U.S. market but proved to be positive in markets outside the U.S. Furthermore, the guidance incorporates the latest foreign exchange rates.
The start of the first quarter in 2025 has been promising for Flutter Entertainment, aligning with anticipated performance levels. The company enjoyed a particularly strong showing during the Super Bowl in the U.S., which helped to balance out less favorable sports results earlier in January. The analyst’s statement emphasized the company’s earnings transformation and the strategic growth in the U.S. market as key factors in their decision to reiterate the Buy rating and raise the price target to $300.
In other recent news, Flutter Entertainment reported impressive fourth-quarter earnings, with adjusted earnings per share reaching $2.94, significantly surpassing analyst expectations of $1.73. The company’s revenue for the quarter was $3.79 billion, slightly below the consensus estimate of $3.82 billion. Flutter also provided a strong revenue forecast for 2025, expecting between $15.48 billion and $16.38 billion, well above the analyst projections of $13.52 billion. Additionally, Flutter announced a share repurchase program, indicating confidence in its financial stability and future prospects.
Flutter’s strategic acquisitions of NSX in Brazil and Snai in Italy, totaling approximately $3 billion, are set to close soon, potentially bolstering its international segment. Analyst Jordan Bender from Citizens JMP raised the price target for Flutter shares to $328, maintaining a Market Outperform rating, reflecting optimism about the company’s ability to expand its market share in iGaming and sports betting. BTIG analysts reiterated their Buy rating with a $323 price target, projecting potential EBITDA growth outside the U.S. due to these acquisitions.
Meanwhile, UBS analyst Ben Shelley maintained a Buy rating with a $335 target, citing strong U.S. guidance as a positive indicator for Flutter’s ambitious EBITDA goals. The company’s robust performance in the U.S., particularly with FanDuel, and solid growth in markets like the UK and Italy, contrast with challenges in the Australian racing market. These developments suggest Flutter is well-positioned to capitalize on opportunities in the expanding U.S. sports betting and online gaming markets.
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