Citizens JMP reiterates Market Outperform rating on Flutter stock

Investing.com - Citizens JMP analyst Jordan Bender has reiterated a Market Outperform rating and $345.00 price target on Flutter Entertainment (NYSE:FLUT), the parent company of FanDuel. The stock, currently trading at $295.28, has shown impressive momentum with a 38% return over the past year and commands a market capitalization of $51.7 billion.

The reiteration comes amid what the firm describes as the most robust prediction market news cycle seen in the real money gaming space in the past seven years, according to a note released last week. InvestingPro data shows Flutter’s strong position in the market, with revenue growing at 15.6% and analysts expecting continued sales growth this year.

The analyst highlighted several significant developments in the prediction market space, including new exchange products and market entrances, with Underdog becoming the first real money gaming operator to enter the prediction space through a partnership with Crypto.com.

Citizens JMP noted that Kalshi has emerged as the leading company by volume in the U.S. at the start of football season, with approximately 10 times more volume compared to the next operator at the NFL season opening.

The firm believes tracking pricing across Kalshi’s contracts will serve as a key indicator of the company’s ability to deliver a comparable or superior product versus major sports betting operators like FanDuel and DraftKings (NASDAQ:DKNG), for which Citizens JMP maintains a Market Outperform rating with a $54 price target.

In other recent news, Flutter Entertainment has been at the center of several significant developments. The company received a reiterated Buy rating from Stifel, which maintained a $356.00 price target following the passage of India’s online gaming bill in the lower house of parliament. This bill, aimed at regulating online gaming, could impact Flutter’s operations in the region. Additionally, Benchmark also reiterated its Buy rating with a $365.00 price target after Flutter announced a new partnership with CME Group. This collaboration aims to offer event contracts on various financial benchmarks through Flutter’s FanDuel platform.

JMP analyst Jordan Bender further supported Flutter with a Market Outperform rating and a $345.00 price target, citing the potential of the CME Group partnership. Meanwhile, FanDuel, a Flutter subsidiary, signed a market access agreement with St. Louis CITY SC to prepare for the launch of mobile sports betting in Missouri, marking the 25th state where it will operate. These developments highlight Flutter Entertainment’s strategic moves in expanding its market presence and adapting to regulatory changes.

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