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On Thursday, Citizens JMP analysts reaffirmed their Market Outperform rating and maintained a $301.00 price target for Flutter Entertainment (NYSE: FLUT), which currently trades at a high P/E ratio of 83.7. The analysis comes as investors evaluate the potential impact of unfavorable sports outcomes during the NFL season. According to InvestingPro data, analyst targets range from $254 to $340, with a strong buy consensus.
The analysts highlighted that the company’s medium-term guidance suggests approximately $5.5 billion in mergers and acquisitions in the coming years. With a market capitalization of $43.38 billion and robust revenue growth of 16.7% in the last twelve months, they emphasized that the negative results from recent sports events do not affect future estimates.
Flutter Entertainment is expected to have a smaller EBITDA impact compared to DraftKings (NASDAQ:DKNG), despite holding a larger market share. This is attributed to its lower dependence on football straight bets and a higher focus on same-game parlays, which offer more protection against unfavorable outcomes.
The reaffirmation of the price target and rating reflects confidence in Flutter Entertainment’s strategy and market position, particularly in the sports betting sector. Investors will continue to monitor the company’s performance in the coming months.
In other recent news, Flutter Entertainment has announced the issuance of senior secured notes totaling $1 billion, which includes USD, EUR, and GBP-denominated notes, to repay previous credit agreements and cover corporate expenses. Additionally, Flutter increased its term B loans by $750 million, with these financial strategies aimed at supporting its acquisition of Snaitech S.p.A. and other corporate needs. The company has also completed its acquisition of a stake in NSX Group, as part of its ongoing expansion efforts. In terms of stock analysis, Bernstein SocGen Group initiated coverage on Flutter Entertainment with a Market Perform rating, citing growth prospects and market leadership. Meanwhile, Citi analysts maintained a Buy rating, despite a new tax in Illinois affecting the company’s U.S. adjusted EBITDA. The tax, impacting Flutter’s FanDuel operations, could result in a 6% impact on U.S. adjusted EBITDA, though Flutter has historically mitigated tax impacts by about 50%. Furthermore, Flutter has updated its total voting rights to comply with regulatory requirements, ensuring transparency for shareholders. These developments underscore Flutter Entertainment’s strategic financial maneuvers and regulatory compliance efforts.
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