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Investing.com - JMP Securities has reiterated its Market Outperform rating and $301.00 price target on Flutter Entertainment (NYSE:FLUT), following the company’s recent moves to acquire full ownership of FanDuel. The stock, currently trading at $289.58, has shown remarkable strength with a 42.32% return over the past year and is approaching its 52-week high of $299.73. InvestingPro analysis indicates the stock is fairly valued, with 14 additional real-time insights available to subscribers.
The research firm noted that while investors haven’t typically viewed Flutter’s partial ownership of FanDuel as problematic, the complete acquisition "cleans up and removes any overhang on the stock if the theory is out there."
The $1.755 billion buyout of the remaining FanDuel stake will increase Flutter’s leverage, which JMP estimates is currently around 3.2x. The firm projects that leverage will remain above Flutter’s targeted range throughout 2026 before reaching 2.5x by the fourth quarter of that year.
Despite the leverage concerns, JMP highlighted that Flutter will benefit from eliminating capital outflows to Boyd Gaming (NYSE:BYD). The company expects to save $65 million through the transaction and add approximately $20 million to net income with no cash outflow to Boyd.
JMP’s $301 price target is based on 20x its 2026 estimated free cash flow and 14.5x its 2026 estimated EBITDA, maintaining its positive outlook on Flutter Entertainment’s prospects.
In other recent news, Flutter Entertainment has seen several notable developments. The company is scheduled to report its second-quarter results on August 7, with UBS expecting Flutter to exceed analyst expectations for both revenue and EBITDA, driven primarily by strong performance in its U.S. operations. BTIG has raised its price target on Flutter to $302, projecting revenue of $7.420 billion and EBITDA of $1.107 billion for the full year 2025. Jefferies resumed coverage on Flutter with a Buy rating and a price target of $380, highlighting potential growth catalysts such as additions to U.S. stock indices and ongoing share buybacks. UBS has reiterated its Buy rating with a $340 price target, citing positive state data trends in the gambling sector.
In corporate news, FanDuel Group, a subsidiary of Flutter Entertainment, announced the appointment of Shailagh Murray as Senior Vice President of Public Affairs and Jonathan Nabavi as Vice President of Federal Affairs. JMP has reiterated a Market Outperform rating for Flutter, with a price target of $301, emphasizing the company’s diversified customer base and its operations in horse racing wagering. These developments indicate continued interest and confidence in Flutter Entertainment’s growth prospects.
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