Jefferies has a positive outlook on Flutter Entertainment, which owns FanDuel. The brokerage started covering the stock again, telling investors to “Buy” and setting a target price of $380 per share. This price target is among the most optimistic on Wall Street right now and suggests the stock could go up by 35% from where it last closed.
Jefferies Sees Flutter Weathering Economic Storms Thanks to Online Focus and Global Scale
Jefferies analyst James Wheatcroft believes Flutter can withstand economic slumps. He points out that its strong digital presence, over 90% of its revenue, and wide global reach shield it from big economic pressures. Wheatcroft notes that online betting does not follow broader economic patterns, which helps protect Flutter from recession risks. He also mentions the company’s good financial health, highlighting its manageable debt and ongoing stock buyback program as key strengths.
The analyst also talks about concerns over slower growth in US sports betting. He explains that this slowdown seems to stem from the company’s plan to cut promotional costs and tweak its products rather than showing any real weakness in the industry.
Apart from its strong spot in the US with FanDuel, Flutter’s overseas business is seen as a big plus. Wheatcroft thinks many investors might not see all the chances Flutter has outside North America.
Flutter’s Global Expansion and Strong Growth Outlook Keep Investors Optimistic
Even though reports showed market share issues in some areas earlier this year, he feels the company is still in a good place to grow in key markets like the UK, Italy, Australia, and Brazil. He points out that changing rules and recent buyouts back up these chances.
Flutter has been growing around the world through smart deals. It bought Italy’s Snai and most of Brazil’s NSX Group. These moves have made it stronger in two of the biggest gaming markets in the world.
Jefferies also pointed out more reasons that could boost Flutter’s stock, like its chance to join big US stock indexes and the ongoing development of its YourWay platform. The firm expects strong financial growth for Flutter, predicting yearly EBITDA to grow by 17% on average and sales to jump by 31% over the next three years, numbers it thinks the wider market does not appreciate yet.
From Wheatcroft’s perspective, Flutter‘s current value still makes sense given these benefits. He pointed out that even when putting a higher price on its US operations compared to rivals such as DraftKings, the stock is still priced. The $380 price target shows the potential for growth over time in the US market backed by strong cash flow and future returns to shareholders.