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On Wednesday, Stifel analysts maintained a positive stance on Flutter Entertainment (NYSE:FLUT), reiterating a Buy rating and a $320.00 price target, falling within the analyst range of $257-$367. The firm’s analyst, Jeff Stantial, shared insights following the company’s fourth-quarter pre-release on January 7, 2025. With a market capitalization of $47.8 billion and strong revenue growth of nearly 20% over the last twelve months, Flutter has demonstrated significant market momentum. InvestingPro analysis reveals 10+ additional exclusive insights about Flutter’s valuation and growth prospects. The initial guidance for fiscal year 2025 was set, aligning with the consensus at the midpoint after adjustments for mergers, acquisitions, and launch costs. With trailing twelve-month revenue of $13.57 billion and an EBITDA of $1.89 billion, the company shows strong operational performance. Stantial noted that while U.S. performance could surpass expectations, the revenue growth outside the U.S. might hover at the lower end of Flutter’s long-term algorithm.
Flutter Entertainment’s shares have seen volatility, attributed to concerns over potential tax hikes, which have overshadowed the positive outlook on the early first-quarter U.S. online sports betting (OSB) handle re-acceleration. The stock has shown resilience with a 24% return over the past year, despite operating with a moderate debt level. Stantial indicated that despite the legislative outlook leaning towards more potential negatives, such as tax increases, than positives, like new state market expansions, the fiscal year 2025 guidance seems achievable for both U.S. and international operations. For deeper insights into Flutter’s financial health and growth prospects, InvestingPro subscribers can access the comprehensive Pro Research Report, part of the platform’s coverage of 1,400+ US equities.
The fourth-quarter 2024 results also hinted at the possibility of Flutter Entertainment being included in the S&P 500 index, a development that could be on the horizon. In response to the latest earnings report, Stifel has adjusted its model, increasing the 2025 estimated adjusted EBITDA by 1%, while maintaining the target price at $320. Stantial’s commentary reaffirms the belief that Flutter Entertainment’s market share momentum, evidenced in the fourth-quarter results, continues to support the multi-year thesis laid out by the firm.
In other recent news, Flutter Entertainment reported a robust financial performance, with a 19% revenue increase and a 26% rise in adjusted earnings before interest, taxes, depreciation, and amortization (AEBITDA). The company also announced a share repurchase program, signaling confidence in its financial stability and future prospects. Benchmark analysts raised their price target for Flutter to $300, maintaining a Buy rating due to the company’s earnings transformation and strategic growth in the U.S. market. Citizens JMP analyst Jordan Bender increased Flutter’s price target to $328, citing market share gains in the iGaming and sports betting sectors despite challenging conditions.
BTIG analysts reiterated a Buy rating with a $323 price target, highlighting Flutter’s strong performance in the fourth quarter of 2024 and potential upside from acquisitions. They project significant growth in FanDuel sportsbook Net Gaming Revenue and robust iGaming trends. UBS analyst Ben Shelley maintained a Buy rating with a $335 target, emphasizing Flutter’s strong guidance for U.S. operations and potential to exceed market expectations. The company’s guidance suggests a promising outlook for reaching its fiscal year 2027 EBITDA target.
Additionally, Flutter Entertainment is preparing for sports betting launches in Missouri and Alberta, while integrating recent acquisitions in Brazil and Italy, which are expected to bolster its international segment. These developments underscore the company’s strategic efforts to capitalize on growth opportunities and strengthen its market position.
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