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Investing.com - Stifel has reiterated its Buy rating and $356.00 price target on Flutter Entertainment (NYSE:FLUT), currently trading at $294.53, following the passage of India’s online gaming bill in the country’s lower house of parliament. The gaming giant, with a market capitalization of $52.07 billion, has demonstrated strong momentum with a 40% return over the past year. According to InvestingPro, the company shows several promising indicators, with 12 key insights available to subscribers.
The Promotion and Regulation of Online Gaming Bill, 2025, which would ban real money online skill games including Rummy, passed through India’s Lok Sabha on Wednesday. The legislation now moves to the upper house (Rajya Sabha) for consideration before potentially advancing to the President for final approval.
Stifel estimates the Indian regulatory development would have less than 1% impact on Flutter Entertainment’s FY25 guidance and FY27 targets, citing the high tax rate and low-margin profile of the market despite its growth potential. The company has demonstrated solid performance, with revenue of $14.89 billion and impressive year-over-year growth of 15.63%.
The firm noted that the Indian bill adds to a series of negative regulatory developments for the gaming industry, including potential tax rate increases in the UK later this year and Brazil’s decision to raise tax rates while reportedly considering shutting down regulated online gambling less than a year after launch.
While maintaining a cautious tactical outlook for the second half of 2025, Stifel remains constructive on Flutter Entertainment’s long-term prospects, citing estimate momentum and an improving competitive moat. InvestingPro analysis indicates a GOOD overall financial health score, with analyst targets ranging from $267 to $393. Get the complete financial picture with InvestingPro’s comprehensive research report, available along with detailed analysis of 1,400+ other US stocks.
In other recent news, Flutter Entertainment reported strong financial results for the second quarter, with revenue increasing by 16% to $4.19 billion and EBITDA growing by 25% to $919 million. These results surpassed consensus estimates by 1% and 14%, respectively, highlighting the company’s robust operating leverage with an EBITDA margin of 22%. Following these results, Macquarie raised its price target for Flutter Entertainment from $320 to $340 while maintaining an Outperform rating. Additionally, Flutter’s subsidiary, FanDuel, announced a partnership with CME Group (NASDAQ:CME) to offer event contracts on various financial benchmarks, including the S&P 500 and Nasdaq-100. This collaboration led Benchmark to reiterate its Buy rating and set a price target of $365 for Flutter. JMP analyst Jordan Bender also maintained a Market Outperform rating with a $345 price target for the company. Further expanding its reach, FanDuel signed a market access agreement with St. Louis CITY SC for the upcoming launch of mobile sports betting in Missouri, marking the 25th state where FanDuel will offer its services.
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