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Investing.com - Oppenheimer has lowered its price target on Flutter Entertainment (NYSE:FLUT), a $43.4 billion market cap gaming company with strong financial health according to InvestingPro analysis, to $330.00 from $350.00 while maintaining an Outperform rating on the stock. The company’s shares currently trade at $249.73, with analyst targets ranging from $262 to $389.
The firm reduced its third-quarter U.S. EBITDA estimate for Flutter to $28 million from $171 million previously, citing unfavorable September NFL betting holds and the timing of marketing investments. Despite this adjustment, Flutter maintains robust financials with $2.2 billion in LTM EBITDA and 15.6% revenue growth. For deeper insights into Flutter’s financial metrics and growth potential, consider exploring the comprehensive analysis available on InvestingPro.
Oppenheimer views Flutter as a less volatile option for U.S. online sports betting exposure due to its international net-win margins of approximately 13%-plus, which supports pricing competencies, and its public Prediction Market strategy.
The firm estimates that a potential UK gaming tax increase could impact Flutter’s 2026 EBITDA by approximately 4% if iGaming and online sports betting taxes increase by 4 and 6 percentage points to 25% and 21%, respectively.
Oppenheimer has conservatively reduced its 2026 and 2027 U.S. EBITDA estimates by 4% and 6% due to expectations of higher promotional investments and taxes, resulting in the new $330 price target.
In other recent news, Flutter Entertainment has been the focus of analyst attention with Stifel and Citizens both reiterating their positive ratings on the company. Stifel maintained its Buy rating, highlighting CEO Peter Jackson’s optimism about prediction markets, which he described as potentially beneficial for the company. Citizens also reiterated its Market Outperform rating with a price target of $340.00, emphasizing the CEO’s confidence in Flutter’s long-term prospects and plans to expand betting offerings to enhance diversification. Additionally, Flutter Entertainment made a regulatory announcement regarding its total voting rights, complying with the UK Financial Conduct Authority’s rules, though no new financial information was disclosed. Meanwhile, DraftKings saw its price target reduced by Benchmark to $43.00 from $53.00, citing third-quarter challenges such as unfavorable sports outcomes and increased promotional expenses. Despite these hurdles, Benchmark maintained a Buy rating on DraftKings. These developments provide investors with insights into the current landscape of the sports betting industry.
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