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Investing.com - Stifel has reduced its price target on Flutter Entertainment (NYSE:FLUT) to $339.00 from $356.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the company currently trades at $243.92, with analysts’ targets ranging from $262 to $389, suggesting significant potential upside.
The firm cited a projected free cash flow growth algorithm of approximately 56% CAGR from 2024 to 2027, supported by secular total addressable market expansion and Flutter’s product and scale advantages. The company has demonstrated strong performance with revenue of $14.89 billion and a healthy gross profit margin of 47%.
Stifel believes the fiscal year 2025 consensus estimates appear reasonable, but sees potential upside for fiscal years 2026 and 2027 driven by market momentum, regulation-driven consolidation, diminishing headwinds, and revenue synergies.
The research firm acknowledged that Flutter’s leading positions face execution risks from rapid mergers and acquisitions along with diversification efforts, though it emphasized the company’s scale advantages in online sports betting and internet casino operations.
Despite Flutter’s three-year outperformance, Stifel considers the stock’s valuation attractive compared to historical and internet sector comparables, with potential catalysts including consensus upgrades, S&P 500 inclusion, and state expansion outweighing negative factors such as potential tax increases or regulatory changes.
In other recent news, Flutter Entertainment has experienced several notable developments. The company’s earnings and revenue have been impacted by the roll-off of its India operations, leading to a $50 million hit on EBITDA, as noted by Bernstein SocGen Group. This adjustment has prompted Bernstein SocGen to lower its price target for Flutter Entertainment to $330, maintaining a Market Perform rating. Similarly, Oppenheimer has reduced its price target from $350 to $330, citing a decrease in their third-quarter U.S. EBITDA estimate due to unfavorable NFL betting holds and marketing investments.
Benchmark has also adjusted its outlook, lowering the price target from $365 to $310 while retaining a Buy rating. In terms of analyst ratings, Stifel has reiterated its Buy rating, expressing optimism about the company’s potential in prediction markets. Stifel’s discussions with Flutter’s CEO, Peter Jackson, highlighted a positive outlook on these markets. Additionally, Citizens analyst Jordan Bender maintained a Market Outperform rating with a $340 price target, noting the CEO’s confidence in the company’s long-term strategy and willingness to diversify betting offerings. These recent developments provide investors with insights into the company’s current financial landscape and future strategies.
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