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Investing.com - Needham raised its price target on Flutter Entertainment (NYSE:FLUT) to $340.00 from $310.00 while maintaining a Buy rating on the stock. According to InvestingPro data, analysts maintain a consensus Buy recommendation with price targets ranging from $36 to $74, suggesting potential upside.
The research firm adjusted its 2025 estimates for Flutter Entertainment to account for higher state taxes in New Jersey and Louisiana, partially offset by favorable sports outcomes in May and June. Needham’s 2026 estimates remain unchanged despite these tax considerations. The company’s financial health score on InvestingPro is rated as FAIR, with particularly strong momentum metrics.
For 2027, Needham projects that better gross gaming revenue (GGR) hold will more than compensate for the higher state taxes, resulting in approximately 2% higher U.S. adjusted EBITDA estimates.
The firm lowered its estimated three-year handle compound annual growth rate (CAGR) through 2027 to 9.4% from 10.7%, while increasing GGR hold assumptions to 74 basis points expansion per year from 54 basis points.
Needham slightly increased its second-quarter U.S. handle growth expectations but remains below consensus, modeling a sequential slowdown from the first quarter due to difficult North Carolina comparisons.
In other recent news, DraftKings (NASDAQ:DKNG) Inc. is expected to report better-than-anticipated second-quarter results, with BofA Securities raising its revenue estimate to $1.50 billion, 6% above the consensus estimate of $1.41 billion. The investment bank has also increased its price target for DraftKings to $50, maintaining a Buy rating. Meanwhile, Mizuho (NYSE:MFG) has reiterated an Outperform rating with a $58 price target, citing market share gains in New York. Benchmark has also raised its price target to $50 following reports of DraftKings’ acquisition talks with Railbird Exchange, a prediction market platform. Additionally, Citi has reiterated its Buy rating and maintained a $58 price target in light of Flutter’s acquisition of Boyd Gaming (NYSE:BYD)’s stake in FanDuel. Mizuho further notes that DraftKings shares appear undervalued compared to FanDuel, given the latter’s implied market cap of $40 billion versus DraftKings’ $21 billion. These developments highlight the dynamic changes and strategic maneuvers within the sports betting industry.
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