On Monday, MoffettNathanson initiated coverage on shares of Flutter Entertainment (NYSE:FLUT) with a Buy rating and a price target of $240.00. The firm highlighted Flutter's premier status in the online sports betting (OSB) and iGaming industry, particularly noting its leading position in the United States market, which is considered the fastest growing and largest in the world.
The firm's analysis suggests that the U.S. online gaming sector is likely to remain a two-horse race, with FanDuel and DraftKings (NASDAQ:DKNG) at the forefront, benefitting from superior economics due to their scale. This competitive dynamic is expected to continue despite the presence of other competitors in the market.
MoffettNathanson also raised questions that investors should consider regarding Flutter's diverse portfolio. These include potential disruptions in the U.S. online gaming market, the international appeal of Flutter's offerings outside the U.S., and how the company should allocate investments between its U.S. and international operations.
The firm expressed confidence that Flutter's international narrative, excluding the U.S., would find resonance among investors. The analyst's comments underscored the importance of understanding the balance between U.S. and international investments for Flutter's continued growth and success in the global market.
In summary, despite the competitive threats, MoffettNathanson's stance suggests a strong conviction in Flutter Entertainment's market position and its ability to maintain a dominant role in the U.S. while also capitalizing on international opportunities.
InvestingPro Insights
With Flutter Entertainment's (NYSE:FLUT) potential in the online sports betting and iGaming industry being highlighted by MoffettNathanson, it's valuable to consider the company's financial metrics and analyst insights.
According to real-time data from InvestingPro, Flutter Entertainment has a market capitalization of $35.0 billion and is experiencing significant revenue growth, with a 24.59% increase over the last twelve months as of Q4 2023.
InvestingPro Tips suggest that while the company operates with a moderate level of debt and its short-term obligations exceed liquid assets, analysts predict profitability this year. This aligns with the firm's positive outlook on Flutter's market position. Moreover, the company has seen a strong return over the last five years, despite not paying dividends to shareholders.
For investors considering Flutter's stock, the current price is 86.74% of its 52-week high, and the company is trading at a high EBITDA valuation multiple. These metrics could be pivotal for assessing the company's current valuation and growth prospects.
For more in-depth analysis, there are 9 additional InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/FLUT. To enhance your investment research, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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