BTIG maintains Flutter stock Buy rating, $323 price target

On Wednesday, BTIG analysts reiterated their Buy rating on Flutter Entertainment (NYSE:FLUT) shares, maintaining a price target of $323.00. The $48.2 billion market cap company, which according to InvestingPro is currently fairly valued, saw its shares trade at $266.15. The reaffirmation followed the company’s fourth-quarter 2024 results, which aligned with expectations set earlier in the year. Flutter’s performance in the fourth quarter, particularly with its FanDuel segment, met the projections previously announced in January. The guidance for revenue and EBITDA outside the United States also matched prior estimates, considering both new state launches in the U.S. and the expected consolidation of NSX and Snai for international operations.

The analysts projected that, after considering the impact of acquisitions in the second half of 2025, the full-year EBITDA for Flutter’s operations outside the U.S. could potentially be $50 million higher than the current guidance of $1.75 to $1.95 billion. The company’s current EBITDA stands at $1.891 billion, with impressive revenue growth of 19.86% over the last twelve months. InvestingPro data reveals that net income is expected to grow this year, though 7 analysts have recently revised their earnings downwards. This adjustment takes into account the -$100 million for NSX and +$150 million for Snai, based on disclosures from the legacy parent company, as well as BTIG’s own estimates for synergies and market share.

Despite a more conservative outlook for U.S. sportsbook handle growth, BTIG remains optimistic about Flutter’s prospects, anticipating over 30% year-over-year growth in FanDuel sportsbook Net Gaming Revenue (NGR) and robust growth in iGaming trends. Potential upside could arise from improvements in structural hold or higher-than-expected sportsbook handle growth.

For Flutter’s operations in the UK and Australia, the analysts have slightly reduced their forecasts due to less favorable results and event comparisons. In the UK, expected growth is around low single digits, while Australian growth is weighed down by racing headwinds, leading to a decline in EBITDA for 2025. However, the inclusion of NSX and Snai’s contributions from the second half of 2025 onwards is expected to bolster the international business, particularly in Italy, where online relicensing and market transitions present opportunities.

The BTIG analysts also addressed Flutter’s potential interest in bidding for the Gioco del Lotto contract in Italy, which could significantly expand the company’s customer base. Despite the high cost of bidding, estimated at a minimum of €1 billion, the analysts see a positive net present value and internal rate of return, factoring in a cross-sell range of 10-15% against the contract’s 8 million players.

Overall, BTIG’s forecasts for Flutter remain largely unchanged, and the analysts suggest that the recent results and guidance provide points for various market perspectives to consider. With analyst targets ranging from $257 to $367 and a strong consensus recommendation of 1.42 (Buy), investors seeking deeper insights can access Flutter’s comprehensive Pro Research Report, available exclusively on InvestingPro, along with over 30 additional key metrics and financial health indicators.

In other recent news, Flutter Entertainment reported better-than-expected fourth-quarter earnings, posting adjusted earnings per share of $2.94, surpassing analyst estimates of $1.73. Revenue for the quarter was $3.79 billion, slightly below the consensus of $3.82 billion. For the full year 2025, Flutter projects revenue between $15.48 billion and $16.38 billion, exceeding analyst expectations of $13.52 billion. UBS analyst Ben Shelley maintained a Buy rating on Flutter shares, with a price target of $335, following strong guidance for the company’s U.S. operations. This guidance is expected to exceed market expectations and suggests potential upgrades from previous projections. Flutter’s U.S. segment, particularly through FanDuel, showed strong momentum, maintaining its position as the leading sports betting operator with a 43% market share. Additionally, the company’s iGaming segment experienced a 43% year-over-year revenue increase. Outside the U.S., Flutter reported solid growth in the UK and Italy, though its Australian operations faced challenges due to a softer racing market. Flutter’s recent developments indicate a positive outlook for its strategic goals and financial performance.

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