Flutter Entertainment stock: Benchmark reiterates Buy rating on CME partnership

Investing.com - Benchmark maintained its Buy rating and $365.00 price target on Flutter Entertainment (NYSE:FLUT), currently trading at $294.53, following the company’s partnership announcement with CME Group (NASDAQ:CME). The company, with a market cap of $52 billion and impressive year-over-year revenue growth of 15.6%, has seen its stock surge 40% over the past year. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.

The research firm noted it had expected Flutter to enter the predictions market, though it had not specifically anticipated CME Group as the partner for this venture.

Benchmark highlighted that CME Group, described as the world’s largest derivatives marketplace, operates within a federally regulated framework and brings extensive experience in transparent, compliant market infrastructure.

The partnership between Flutter and CME Group will focus on developing defined risk event contracts, according to the research note.

Benchmark indicated that the timeline for the partnership aligns with its previous expectations, with a launch planned for 2025.

In other recent news, Flutter Entertainment reported strong second-quarter results, with revenue reaching $4.19 billion, marking a 16% increase from the previous year. The company’s adjusted EBITDA also grew by 25% to $919 million, surpassing consensus estimates. Following these results, Benchmark raised its price target for Flutter Entertainment to $365, maintaining a Buy rating, while Macquarie increased its target to $340 with an Outperform rating. Additionally, JMP analyst Jordan Bender reiterated a Market Outperform rating for the company, setting a $345 price target.

In other developments, FanDuel, owned by Flutter Entertainment, announced a partnership with CME Group to offer event contracts on financial benchmarks, including the S&P 500 and Nasdaq-100. The company also secured a market access agreement with St. Louis CITY SC for the launch of mobile sports betting in Missouri. Meanwhile, Robinhood Markets (NASDAQ:HOOD) introduced football prediction markets on its platform, impacting competitors like DraftKings (NASDAQ:DKNG) and Flutter Entertainment. These recent developments highlight significant activity and strategic moves by Flutter Entertainment and its subsidiaries.

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