Flutter Entertainment price target raised to $259 from $254 by HSBC

HSBC raised its price target on Flutter Entertainment (NYSE:FLUT) to $259 from $254 on Wednesday, while maintaining its Hold rating on the gaming company’s stock. According to InvestingPro data, Flutter currently trades at $271.60, with analyst targets ranging from $254 to $340.

The research firm cautioned investors against viewing recent share price weakness as a buying opportunity, stating that "fundamental upside is limited" for the company. This comes despite Flutter’s strong revenue growth of 16.7% over the last twelve months to $14.3 billion, though the stock’s high P/E ratio of 93.4 suggests rich valuation levels.

HSBC’s analysis suggests Flutter’s business prospects don’t warrant a more bullish stance despite the modest increase in price target, which represents less than a 2% adjustment from its previous valuation.

The firm’s report also addressed Entain, another gaming company in its coverage universe, which it views more favorably with a Buy rating and a price target increase to 949p from 845p.

HSBC characterized Entain as "a business that has stopped the rot" despite acknowledging "plenty of execution risk" for that company, contrasting with its more cautious outlook on Flutter Entertainment.

In other recent news, Flutter Entertainment has issued senior secured notes totaling $1 billion and increased its term B loans by $750 million. The notes, issued through Flutter Treasury DAC, include USD, EUR, and GBP-denominated notes with varying interest rates, aimed at repaying amounts under a Bridge Credit Agreement and covering general corporate expenses. In addition, Citizens JMP analysts reiterated their Market Outperform rating for Flutter, maintaining a $301.00 price target, emphasizing the company’s strong earnings potential and market presence. Meanwhile, Bernstein maintained its Market Perform rating, highlighting Flutter’s growth potential in the U.S. market through FanDuel, despite concerns about potential regulatory changes in the UK. Flutter has also announced a new transaction fee for FanDuel customers in Illinois, responding to the state’s legislative decision to implement a betting transaction fee. The company expressed disappointment with the new fee, warning that it may drive bettors to unregulated operators. These developments reflect Flutter’s strategic financial management and ongoing market expansion efforts.

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