UBS reiterates Buy rating on Flutter Entertainment stock at $340 target

Published 07/07/2025, 15:38
UBS reiterates Buy rating on Flutter Entertainment stock at $340 target

Investing.com - UBS has reiterated its Buy rating on Flutter Entertainment (NYSE:FLUT) with a price target of $340.00, maintaining its positive outlook on the online gambling company. With a current market capitalization of $50.19 billion and trailing twelve-month revenue of $14.32 billion, Flutter has established itself as a major player in the online gambling sector. InvestingPro analysis indicates the stock is currently fairly valued, with multiple positive indicators supporting the bullish outlook.

Flutter shares have recovered significantly since mid-February, gaining 22% over the past three months. UBS attributes this recovery to reduced concerns about U.S. tax issues and positive state data trends in the gambling sector. According to InvestingPro data, the company has demonstrated strong momentum with a 44% return over the past year and maintains a healthy financial position with moderate debt levels.

The company is scheduled to report its second-quarter results on August 7, with UBS expecting Flutter to exceed analyst expectations for both revenue and EBITDA, driven primarily by strong performance in its U.S. operations.

UBS forecasts that Flutter will at least maintain its fiscal year 2025 earnings guidance despite new U.S. tax challenges, citing anticipated top-line outperformance in the second quarter. The firm’s estimates place Flutter’s results at the upper end of the company’s original guidance ranges provided during its fiscal year 2024 results.

Flutter currently trades at approximately 12 times its estimated fiscal year 2026 EBITDA, with UBS projecting a compound annual growth rate of about 17% through 2029, which the firm considers an attractive investment opportunity with positive catalysts ahead.

In other recent news, Flutter Entertainment has been the subject of several analyst reviews and corporate developments. Bernstein SocGen Group maintained a Market Perform rating with a $275.00 price target, expressing optimism about FanDuel’s growth in the U.S. but cautioning about potential regulatory changes in the UK. Similarly, Citizens JMP reiterated a Market Outperform rating, highlighting Flutter’s earnings potential and maintaining a price target of $301.00. JMP also reiterated a Market Outperform rating, emphasizing Flutter’s diversified customer base and its horse racing platform, TVG, which contributes to its revenue.

HSBC raised its price target on Flutter Entertainment to $259 from $254 but maintained a Hold rating, warning against viewing recent share price weaknesses as buying opportunities. Meanwhile, FanDuel, a subsidiary of Flutter Entertainment, appointed Shailagh Murray and Jonathan Nabavi to key public affairs roles, signaling a strategic focus on policy discussions in the online gaming industry. These appointments come as Flutter continues to expand its presence across various markets. The company remains a significant player in the global gaming and sports betting markets.

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