Wedbush Initiates Coverage on Flutter Entertainment with Outperform Rating
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: seekingalpha
- Market Competition Analysis: Wedbush Securities has initiated coverage on Flutter Entertainment (FLUT) with an Outperform rating, citing a 50% decline in share price over the past six months due to market competition concerns, indicating a lack of investor confidence in the company.
- Market Leadership Position: Flutter Entertainment is recognized as the world's largest online sports betting and iGaming operator, with market share leader FanDuel in the U.S. and a mature international segment covering about 100 markets, showcasing strong market potential and profitability.
- Future Growth Expectations: Analyst Matthew McCartney highlighted that current valuation levels do not adequately factor in the upside opportunity from FLUT's prediction market offering, with expectations for a rebound in U.S. performance in the second half of the year likely to drive shares higher.
- Price Target Setting: Wedbush assigned a 12-month price target of $138 for FLUT, which equates to 10 times the FY27 EBITDA estimate, within the historical range of 8 to 12 times, reflecting confidence in the company's future growth prospects.
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Analyst Views on FLUT
Wall Street analysts forecast FLUT stock price to rise
26 Analyst Rating
23 Buy
3 Hold
0 Sell
Strong Buy
Current: 101.650
Low
228.00
Averages
296.77
High
381.46
Current: 101.650
Low
228.00
Averages
296.77
High
381.46
About FLUT
Flutter Entertainment plc is an online sports betting and iGaming operator. Its segments include the United States (U.S.), United Kingdom and Ireland (UKI), Australia and International. The U.S. segment offers sports betting, casino, DFS and horse racing wagering products to players across various states in the United States, mainly online but with sports betting services also provided through retail outlets and certain online products in the province of Ontario in Canada. The UKI segment offers sports betting (sportsbook), iGaming products and other products through its Sky Betting & Gaming, Paddy Power, Betfair and tombola brands. Its Australia segment offers online sports betting products through its Sportsbet brand. The International segment includes its operations in 100 global markets and offers sports betting, casino, poker, rummy and lottery, mainly online. This segment includes Sisal, PokerStars, Snai, Betfair International, Adjarabet, MaxBet, Betnacional, and other brands.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Wedbush Initiates Outperform Rating on Flutter Entertainment
- Coverage Initiation: Wedbush has initiated coverage on Flutter Entertainment with an 'Outperform' rating and a price target of $138, indicating approximately 24% upside from Tuesday's close, reflecting overly negative market expectations regarding the stock's performance.
- Market Share Investment: Flutter is investing about $300 million into its 'FanDuel Predicts' platform to enhance customer engagement and regain market share in the U.S., with this initiative expected to play a crucial role during the 2026 FIFA World Cup in reversing the company's current downturn.
- World Cup Growth Opportunity: Wedbush analysts anticipate that the 2026 FIFA World Cup will serve as a significant opportunity for Flutter to gain market share, supported by the NFL and college football seasons, which could further bolster the company's performance recovery.
- Wall Street Sentiment: According to Koyfin data, 21 out of 27 analysts rate FLUT as 'Buy' or 'Strong Buy', indicating a generally optimistic outlook on Flutter's future growth, with a 12-month average target price of $162.04, suggesting a potential upside of about 39%.
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Novig Receives CFTC Approval, Expanding Sports Prediction Market
- Intensifying Market Competition: With the CFTC's approval for Novig to operate as a federally regulated prediction market, the company aims to disrupt traditional sports betting models by allowing direct peer-to-peer trading, which is expected to attract more users and increase market share.
- Strong Financial Backing: Novig raised $75 million in a Series B funding round in February, achieving a valuation of $500 million and bringing total capital raised to over $105 million, providing robust financial support in a competitive landscape.
- Surging Trading Volume: Novig claims to have surpassed $5 billion in cumulative trading volume and over $8 billion in annualized volume, indicating the potential of sports trading as an asset class and drawing increasing investor interest.
- Legal Challenges Escalate: As multiple states sue companies like Kalshi, the legality of prediction markets is under scrutiny, while the CFTC actively defends its regulatory authority, which could impact the future development of the entire industry.
See More
Wedbush Initiates Coverage on Flutter Entertainment with Outperform Rating
- Market Competition Analysis: Wedbush Securities has initiated coverage on Flutter Entertainment (FLUT) with an Outperform rating, citing a 50% decline in share price over the past six months due to market competition concerns, indicating a lack of investor confidence in the company.
- Market Leadership Position: Flutter Entertainment is recognized as the world's largest online sports betting and iGaming operator, with market share leader FanDuel in the U.S. and a mature international segment covering about 100 markets, showcasing strong market potential and profitability.
- Future Growth Expectations: Analyst Matthew McCartney highlighted that current valuation levels do not adequately factor in the upside opportunity from FLUT's prediction market offering, with expectations for a rebound in U.S. performance in the second half of the year likely to drive shares higher.
- Price Target Setting: Wedbush assigned a 12-month price target of $138 for FLUT, which equates to 10 times the FY27 EBITDA estimate, within the historical range of 8 to 12 times, reflecting confidence in the company's future growth prospects.
See More
Major Wall Street Rating Changes Overview
- UBS Upgrade: UBS upgrades Dynatrace from neutral to buy, citing strong core application performance monitoring demand which is expected to drive modest growth, reflecting a healthy demand backdrop in the market.
- Bank of America Upgrade: Bank of America upgrades Kilroy Realty from neutral to buy, raising the price target from $42 to $44, indicating confidence in improving demand dynamics that are likely to enhance the company's competitive position in the REIT sector.
- DA Davidson Initiation: DA Davidson initiates coverage on Lincoln Electric with a buy rating and a $320 price target, emphasizing its potential as an industrial compounder, which suggests future growth opportunities in the sector.
- Goldman Sachs Neutral Reiteration: Goldman Sachs reiterates Tesla as neutral, forecasting that its Q2 2026 delivery numbers will exceed consensus expectations, thereby boosting confidence in the company's future performance.
See More
Flutter Entertainment Set for Boost from 2026 FIFA World Cup
- World Cup Opportunity: Wedbush Securities anticipates that the 2026 FIFA World Cup will significantly boost Flutter Entertainment's market share, with analysts recommending investors buy shares while prices are low, setting a price target of $138, indicating a 27% upside from Monday's close.
- Investment in Prediction Market: Flutter has committed approximately $300 million to expand FanDuel Predicts, aiming to enhance its competitive edge in the prediction market and attract more sports bettors in the U.S., with the World Cup expected to serve as the first real demand test for this initiative.
- Promotional Strategy Enhancement: Wedbush highlights that Flutter is responding to market demands with a series of
See More
DraftKings and Flutter Ramp Up Marketing Efforts for World Cup
- World Cup Marketing Strategy: Wells Fargo expects DraftKings (DKNG) and Flutter Entertainment (FLUT) to ramp up their marketing efforts during and after the World Cup, aiming to attract new customers and enhance the visibility of their prediction market platforms during this massive 39-day global sports event.
- Earnings Forecast Downgrade: Due to increased sales and marketing costs in Q2, Wells Fargo has lowered EBITDA estimates for DraftKings and Flutter Entertainment to near the lowest levels on Wall Street, reflecting concerns about their profitability amidst rising expenses.
- Super App Concept: DraftKings is explicitly moving towards a single super app across all 50 states that integrates sports betting and prediction markets, while Flutter Entertainment operates its prediction markets as a largely separate app with selective links to its core sportsbook, indicating differing strategic approaches.
- Intensifying Market Competition: As DraftKings and Flutter Entertainment compete aggressively during the World Cup, market attention on their future performance increases, particularly in the context of the growing convergence of sports betting and prediction markets, which may impact their long-term strategic positioning.
See More
Wedbush Initiates Outperform Rating on Flutter Entertainment
- Coverage Initiation: Wedbush has initiated coverage on Flutter Entertainment with an 'Outperform' rating and a price target of $138, indicating approximately 24% upside from Tuesday's close, reflecting overly negative market expectations regarding the stock's performance.
- Market Share Investment: Flutter is investing about $300 million into its 'FanDuel Predicts' platform to enhance customer engagement and regain market share in the U.S., with this initiative expected to play a crucial role during the 2026 FIFA World Cup in reversing the company's current downturn.
- World Cup Growth Opportunity: Wedbush analysts anticipate that the 2026 FIFA World Cup will serve as a significant opportunity for Flutter to gain market share, supported by the NFL and college football seasons, which could further bolster the company's performance recovery.
- Wall Street Sentiment: According to Koyfin data, 21 out of 27 analysts rate FLUT as 'Buy' or 'Strong Buy', indicating a generally optimistic outlook on Flutter's future growth, with a 12-month average target price of $162.04, suggesting a potential upside of about 39%.
See More
Novig Receives CFTC Approval, Expanding Sports Prediction Market
- Intensifying Market Competition: With the CFTC's approval for Novig to operate as a federally regulated prediction market, the company aims to disrupt traditional sports betting models by allowing direct peer-to-peer trading, which is expected to attract more users and increase market share.
- Strong Financial Backing: Novig raised $75 million in a Series B funding round in February, achieving a valuation of $500 million and bringing total capital raised to over $105 million, providing robust financial support in a competitive landscape.
- Surging Trading Volume: Novig claims to have surpassed $5 billion in cumulative trading volume and over $8 billion in annualized volume, indicating the potential of sports trading as an asset class and drawing increasing investor interest.
- Legal Challenges Escalate: As multiple states sue companies like Kalshi, the legality of prediction markets is under scrutiny, while the CFTC actively defends its regulatory authority, which could impact the future development of the entire industry.
See More
Wedbush Initiates Coverage on Flutter Entertainment with Outperform Rating
- Market Competition Analysis: Wedbush Securities has initiated coverage on Flutter Entertainment (FLUT) with an Outperform rating, citing a 50% decline in share price over the past six months due to market competition concerns, indicating a lack of investor confidence in the company.
- Market Leadership Position: Flutter Entertainment is recognized as the world's largest online sports betting and iGaming operator, with market share leader FanDuel in the U.S. and a mature international segment covering about 100 markets, showcasing strong market potential and profitability.
- Future Growth Expectations: Analyst Matthew McCartney highlighted that current valuation levels do not adequately factor in the upside opportunity from FLUT's prediction market offering, with expectations for a rebound in U.S. performance in the second half of the year likely to drive shares higher.
- Price Target Setting: Wedbush assigned a 12-month price target of $138 for FLUT, which equates to 10 times the FY27 EBITDA estimate, within the historical range of 8 to 12 times, reflecting confidence in the company's future growth prospects.
See More
Major Wall Street Rating Changes Overview
- UBS Upgrade: UBS upgrades Dynatrace from neutral to buy, citing strong core application performance monitoring demand which is expected to drive modest growth, reflecting a healthy demand backdrop in the market.
- Bank of America Upgrade: Bank of America upgrades Kilroy Realty from neutral to buy, raising the price target from $42 to $44, indicating confidence in improving demand dynamics that are likely to enhance the company's competitive position in the REIT sector.
- DA Davidson Initiation: DA Davidson initiates coverage on Lincoln Electric with a buy rating and a $320 price target, emphasizing its potential as an industrial compounder, which suggests future growth opportunities in the sector.
- Goldman Sachs Neutral Reiteration: Goldman Sachs reiterates Tesla as neutral, forecasting that its Q2 2026 delivery numbers will exceed consensus expectations, thereby boosting confidence in the company's future performance.
See More
Flutter Entertainment Set for Boost from 2026 FIFA World Cup
- World Cup Opportunity: Wedbush Securities anticipates that the 2026 FIFA World Cup will significantly boost Flutter Entertainment's market share, with analysts recommending investors buy shares while prices are low, setting a price target of $138, indicating a 27% upside from Monday's close.
- Investment in Prediction Market: Flutter has committed approximately $300 million to expand FanDuel Predicts, aiming to enhance its competitive edge in the prediction market and attract more sports bettors in the U.S., with the World Cup expected to serve as the first real demand test for this initiative.
- Promotional Strategy Enhancement: Wedbush highlights that Flutter is responding to market demands with a series of
See More
DraftKings and Flutter Ramp Up Marketing Efforts for World Cup
- World Cup Marketing Strategy: Wells Fargo expects DraftKings (DKNG) and Flutter Entertainment (FLUT) to ramp up their marketing efforts during and after the World Cup, aiming to attract new customers and enhance the visibility of their prediction market platforms during this massive 39-day global sports event.
- Earnings Forecast Downgrade: Due to increased sales and marketing costs in Q2, Wells Fargo has lowered EBITDA estimates for DraftKings and Flutter Entertainment to near the lowest levels on Wall Street, reflecting concerns about their profitability amidst rising expenses.
- Super App Concept: DraftKings is explicitly moving towards a single super app across all 50 states that integrates sports betting and prediction markets, while Flutter Entertainment operates its prediction markets as a largely separate app with selective links to its core sportsbook, indicating differing strategic approaches.
- Intensifying Market Competition: As DraftKings and Flutter Entertainment compete aggressively during the World Cup, market attention on their future performance increases, particularly in the context of the growing convergence of sports betting and prediction markets, which may impact their long-term strategic positioning.
See More
