US LNG exports surge but will buyers in China turn up?
On Wednesday, BofA Securities maintained a positive stance on Flutter Entertainment (NYSE:FLUT) shares, reiterating a Buy rating and a price target of $310.00. The company, currently valued at $47.8 billion, has seen impressive momentum with a 43% price return over the past six months. According to InvestingPro data, the stock is trading near its fair value, with 14 additional expert insights available to subscribers. The endorsement comes in light of robust data surrounding the Super Bowl betting activity, which supports the firm’s optimistic view on the maturity of the US online sports betting market and the potential of parlay betting to enhance hold rates.
Flutter Entertainment’s FanDuel platform demonstrated strong performance metrics, aligning with BofA Securities’ forecast. The company has shown robust revenue growth of 19.86% over the last twelve months, reflecting its market strength. The American Gaming Association (AGA) had anticipated that around $1.4 billion would be bet through legal channels on the Super Bowl, marking a 12% year-over-year increase. Actual betting activity appeared to outpace these projections, with New Jersey, a leading state in sports betting, reporting a 19% year-over-year growth in total handle (retail/online) for the event.
FanDuel, a key player in the industry, saw a 19% increase in active bets year-over-year. Moreover, GeoComply data indicated a 14% rise in active player accounts. Notably, New Jersey’s Gross Gaming Revenue (GGR) tripled, achieving a record win rate of approximately 15%. BofA Securities attributes this not only to favorable outcomes in the games but also to a growing trend of parlay bets among players.
Flutter Entertainment’s inclusion in BofA Securities’ "25 stocks for 2025" and its Europe 1 list, which highlights top investment ideas, underscores the firm’s conviction in the stock’s potential. With earnings scheduled for February 27, InvestingPro subscribers can access comprehensive analysis and detailed financial metrics to make informed investment decisions through the exclusive Pro Research Report, available for over 1,400 US stocks. The analyst’s commentary reflects confidence in the ongoing evolution and profitability of the US online sports betting industry, particularly as it relates to Flutter’s FanDuel platform.
In other recent news, Flutter Entertainment’s US business, FanDuel, reported a significant customer engagement with its responsible gaming tool, My Spend, during the recent NFL season. Nearly half of its user base utilized this feature to monitor their betting activities. FanDuel also introduced Deposit Alerts, a feature that allows customers to set budget targets and receive notifications when their spending reaches the predetermined limit. The company plans to further advance its responsible gaming technology in 2025.
Meanwhile, DraftKings (NASDAQ:DKNG), another leading gaming company, faced a downward adjustment in its price target by TD Cowen due to lower projected adjusted EBITDA for the fiscal year 2028. The adjustment comes amid evolving tax strategies that could reshape the online sports betting landscape, potentially impacting the margins of operators like DraftKings.
On the other hand, UBS analysts showed optimism towards Flutter Entertainment, increasing the stock’s price target from $320.00 to $335.00. This adjustment follows a significant upgrade cycle in the company’s US operations during the previous year. Similarly, Stifel analysts initiated coverage of Flutter Entertainment shares with a Buy rating and a price target of $320, citing the company’s dominant force in the online sports betting and iCasino industry.
In addition, JMP Securities pointed out that the U.S. gaming market serves as a competitive moat for companies like FanDuel and DraftKings, which are well-positioned to benefit from the current market conditions. The concentration of U.S. online market share among operators with their own technology platforms and a lack of progress in iGaming legalization were noted as key factors contributing to this competitive advantage.
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