Bernstein reiterates Flutter stock rating amid US growth, UK tax concerns

Published 16/06/2025, 14:30
Bernstein reiterates Flutter stock rating amid US growth, UK tax concerns

Bernstein SocGen Group maintained its Market Perform rating and $275.00 price target on Flutter Entertainment (NYSE:FLUT) Monday. According to InvestingPro data, the stock currently trades near its Fair Value, with analyst targets ranging from $254 to $340.

The research firm cited Flutter’s "complex yet attractive medium-term growth algorithm" presented during the company’s investor day presentation last fall. Bernstein highlighted Flutter’s market leadership and technological advantage through its Flutter Edge platform as key growth drivers for the company. The company’s robust 16.7% revenue growth and $47.15B market capitalization support its market leadership position.

The firm expressed particular optimism about FanDuel’s handle growth potential in the United States market. Bernstein also noted promising outlooks for Flutter’s local hero brands operating in Brazil and Italy.

Despite these positive factors, Bernstein flagged two areas of concern that warrant monitoring. The firm is watching the pace of same-game parlay penetration in the US market and its potential implications for structural hold rates.

Bernstein also expressed caution regarding potential regulatory changes to online gaming levies in the United Kingdom (TADAWUL:4280), where Flutter generated approximately 40% of its 2024 EBITDA.

In other recent news, Flutter Entertainment has been in the spotlight with several notable developments. The company issued senior secured notes totaling $1 billion, alongside increasing its term B loans by $750 million. These financial strategies are intended to repay amounts under a previously established Bridge Credit Agreement and cover general corporate expenses. Meanwhile, Citizens JMP reiterated its Market Outperform rating for Flutter Entertainment, maintaining a price target of $301 per share. The firm emphasized Flutter’s unmatched earnings potential and global expansion capabilities. Additionally, Bernstein SocGen Group initiated coverage on Flutter with a Market Perform rating and a price target of $275. The analysts highlighted Flutter’s medium-term growth prospects and market leadership but expressed caution about same-game parlay penetration in the U.S. In response to a new Illinois betting transaction fee, Flutter announced a $0.50 per bet fee for FanDuel customers in the state, effective September 2025. CEO Peter Jackson expressed concerns over the fee’s impact on recreational customers and warned it might drive bettors to unregulated operators.

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