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On Wednesday, Citizens JMP analyst Jordan Bender increased the price target on Flutter Entertainment (NYSE:FLUT) shares to $328.00, up from the previous target of $311.00, while maintaining a Market Outperform rating. According to InvestingPro data, the stock currently trades at $266.15, with analyst targets ranging from $257 to $367, suggesting potential upside. The company commands a substantial market capitalization of $48.14 billion, though InvestingPro analysis indicates it’s currently trading slightly below its Fair Value. Bender’s assessment follows Flutter’s early January profit warning, which he believes provided an accurate reflection of the company’s fourth-quarter performance. Despite negative sporting outcomes impacting the results, Flutter’s revenue still managed to surpass consensus expectations by 1% and achieved in-line EBITDA.
Flutter Entertainment, facing a challenging quarter in the U.S., succeeded in expanding its market share in both iGaming and sports betting sectors. This growth has continued into the first quarter of 2025, with early results indicating further market share gains. The company’s impressive revenue growth of 19.86% in the last twelve months reflects this expansion, though InvestingPro data shows the company is currently operating at a loss with plans to return to profitability this year. This performance comes even as the company experiences more typical year-to-date game outcomes, contrasting with the industry, which has seen better-than-expected results.
The analyst also highlighted Flutter’s strategic efforts to capitalize on growth opportunities. The company’s recent acquisitions, including NSX in Brazil and Snai in Italy, totaling approximately $3 billion, are set to close in the coming months. Financial data from InvestingPro shows Flutter operates with a moderate debt level and maintains a healthy Altman Z-Score of 10.37, indicating strong financial stability despite these significant investments. Get access to 10+ additional exclusive ProTips and comprehensive analysis through an InvestingPro subscription. These acquisitions will be integrated throughout the year, contributing to Flutter’s international segment expansion. Additionally, the company is preparing for sports betting launches in Missouri and potentially Alberta, which will require careful modeling on a quarterly basis.
Bender’s commentary included a positive outlook on Flutter’s guidance, noting that the reported results for the first two months of the first quarter of 2025 and the implied second-quarter EBITDA outlook for the U.S. could position the company to exceed expectations and revise forecasts upward before any new market launches.
In conclusion, the analyst’s revised price target reflects a confidence in Flutter Entertainment’s ability to overcome recent challenges and capitalize on market opportunities, potentially leading to a stronger financial performance in the upcoming quarters.
In other recent news, Flutter Entertainment reported strong fourth-quarter earnings, significantly surpassing analyst expectations with adjusted earnings per share of $2.94, compared to the forecasted $1.73. The company’s revenue for the quarter was $3.79 billion, slightly below the consensus estimate of $3.82 billion. For 2025, Flutter has projected revenue between $15.48 billion and $16.38 billion, exceeding analyst projections of $13.52 billion. UBS analyst Ben Shelley maintained a Buy rating on Flutter’s stock with a price target of $335, highlighting the company’s strong guidance for its U.S. operations and potential for exceeding market expectations. BTIG analysts also reiterated their Buy rating, setting a price target of $323, following the company’s fourth-quarter results that aligned with earlier projections. They noted potential growth in the U.S. FanDuel segment and international operations, despite conservative forecasts for the UK and Australia. The analysts at BTIG also mentioned Flutter’s interest in bidding for the Gioco del Lotto contract in Italy, which could expand its customer base significantly. Both UBS and BTIG express confidence in Flutter’s strategic direction and financial performance, with particular emphasis on its U.S. business outlook and international growth opportunities.
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