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Investing.com - Jefferies has resumed coverage on Flutter Entertainment (NYSE:FLUT) with a Buy rating and a price target of $380.00. The gambling giant, currently valued at over $50 billion, has demonstrated strong momentum with a 43% return over the past year. According to InvestingPro data, the company maintains a "GOOD" overall financial health score.
The research firm cited Flutter’s potential for strong growth, projecting three-year compound annual growth rates (CAGRs) of 17% for revenue and 31% for EBITDA, which it believes are not reflected in the current valuation of 13x FY26E EV/EBITDA. Recent performance supports this outlook, with revenue growing at 16.7% and current trailing twelve-month revenue reaching $14.3 billion. For deeper insights into Flutter’s growth metrics and valuation analysis, check out the comprehensive Pro Research Report available on InvestingPro.
Jefferies highlighted several attractive features of the gambling company, including its insulation from macroeconomic pressures, a simplified business narrative, and multiple potential catalysts for stock appreciation.
These catalysts include possible additions to U.S. stock indices, an ongoing share buyback program, acquisition timing and integration, and increased penetration of the company’s YourWay product.
The firm also noted it gained confidence from detailed analyses of slowing U.S. handle growth and Flutter’s international market share position.
In other recent news, Flutter Entertainment is set to report its second-quarter results on August 7, with UBS expecting the company to exceed analyst expectations for both revenue and EBITDA, driven by strong performance in its U.S. operations. UBS has reiterated its Buy rating on Flutter Entertainment with a price target of $340, citing positive state data trends in the gambling sector. Additionally, JMP has maintained a Market Outperform rating on the company, emphasizing its diversified customer base and international VIP players. Meanwhile, HSBC raised its price target for Flutter to $259 but maintained a Hold rating, expressing caution about the company’s business prospects. Bernstein maintained a Market Perform rating, highlighting Flutter’s growth potential in the U.S. and its technological advantage through the Flutter Edge platform. However, Bernstein also pointed out concerns about potential regulatory changes in the UK, where Flutter generates a significant portion of its EBITDA. In a related development, FanDuel, a subsidiary of Flutter Entertainment, appointed Shailagh Murray and Jonathan Nabavi to lead its public affairs team, reflecting the company’s focus on shaping online gaming policy discussions. These developments underscore the dynamic landscape in which Flutter Entertainment is operating.
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