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On Thursday, UBS analyst Ben Shelley reaffirmed a Buy rating and a $340.00 price target for Flutter Entertainment (NYSE:FLUT), representing potential upside from the current price of $241.67. According to InvestingPro data, three analysts have recently revised their earnings estimates upward, with price targets ranging from $257 to $367. Shelley’s analysis anticipates a continued upgrade cycle in the United States for the year 2025, based on an evolving revenue composition that includes lower handle growth but increased iGaming growth and a higher net win margin.
Shelley’s commentary highlighted Flutter’s efforts to enhance promotional efficiency and parlay penetration in the online sports betting sector. These strategies are expected to shift customers toward higher margin but lower stake products. The company’s strong revenue growth of 19.15% and healthy gross profit margin of 47.71% support this strategic shift. While this may present a challenge to handle growth, it is likely to benefit the net win margin.
The recalibrated forecasts for the company now include a 12% handle growth, down from the previously expected 16%. However, the net win margin is projected to be slightly higher at 9.8%, compared to the former estimate of 9.6%. Additionally, iGaming growth is forecasted at 32%, up from the previous 30%.
Despite the adjustments in individual growth metrics, UBS’s overall estimates for Flutter Entertainment in the US market remain unchanged. The firm continues to anticipate that the company’s performance will surpass the guidance and consensus for the year 2025. Want deeper insights? InvestingPro offers comprehensive analysis with 12 additional exclusive tips and a detailed financial health score for Flutter Entertainment.
In other recent news, Flutter Entertainment has reported significant developments that are of interest to investors. The company announced a robust full-year performance for 2024, with a 19% increase in revenue and a 26% rise in adjusted earnings before interest, taxes, depreciation, and amortization (AEBITDA), driven largely by the expansion of its U.S. operations. Benchmark analysts responded by raising the price target for Flutter to $300, maintaining a Buy rating. Similarly, Citizens JMP increased their price target to $328, highlighting Flutter’s market share growth in iGaming and sports betting sectors despite challenging conditions.
Flutter Entertainment also unveiled a share repurchase program, demonstrating confidence in its financial stability and future prospects. The company is actively pursuing strategic growth opportunities, including recent acquisitions in Brazil and Italy, which are expected to close soon and contribute to international expansion. BTIG analysts maintained their Buy rating with a $323 price target, noting potential for over 30% year-over-year growth in FanDuel sportsbook Net Gaming Revenue. They also emphasized the possible benefits from acquisitions like NSX and Snai, which could enhance Flutter’s international operations.
Stifel analysts reiterated a Buy rating with a $320 target, citing the company’s market share momentum and achievable fiscal year 2025 guidance. The potential inclusion of Flutter in the S&P 500 index was also noted, which could further impact investor interest. Overall, these developments reflect a period of strategic growth and positive financial performance for Flutter Entertainment.
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