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According to Wells Fargo, investors should pick up shares of Flutter Entertainment following a recent selloff. Analyst Daniel Politzer upgraded the online sports betting company’s stock from equal-weight to overweight. The move comes after shares sold off 8.8% on Friday following reports that the UK is considering raising taxes on the gaming industry. “Friday’s settlement reflects an almost worse fiscal scenario in the UK,” he wrote. However, “FLUT management is realistic about gambling taxes (“they only increase over time”), but its track record highlights its attractive positioning in the UK industry (No. 1 overall with market share 30%), which provides some insulation; “Larger operators have historically been able to withstand costly regulatory changes better than smaller competitors.” Politzer also raised the company’s price target to $295 from $224 per share, suggesting a 34% upside from Friday’s close. Shares are up about 23% so far this year and were up more than 5% in premarket Monday. The analyst noted that key performance indicators suggest that FanDuel parent company’s financial targets, including expectations for 15% to 17% revenue growth at a compounded annual growth rate through 2027, appear “quite conservative.” ”. Wells Fargo isn’t the only company becoming more bullish on Flutter. Bank of America analyst Adrien de Saint Hilaire restored coverage on the company with a buy rating, saying FanDuel’s “unique positioning,” along with a “vigorous market backdrop,” should drive EBITDA growth stronger than expected. FLUT YTD mountain Shares this year “We believe Flutter’s recent US listing, coupled with the company’s orientation away from European gaming and towards US internet consumption, should lead to a reassessment of the valuation,” he wrote. “Despite its business and financial characteristics being similar to better, Flutter trades at a 35% discount to its “new peers,” highlighting strong rerating potential.” His $300 price target implies the stock could gain nearly 37% from Friday’s close.
‘ www.cnbc.com ‘
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