Citi analyst Monique Pollard maintained a Buy rating on Flutter Entertainment PLC (FLTR – Research Report) yesterday and set a price target of £260.00.
Monique Pollard’s rating is based on several key considerations regarding Flutter Entertainment PLC’s market position and future prospects. One significant factor is the company’s ability to manage potential tax changes in the US online sports betting (OSB) and iGaming sectors. Despite proposed tax increases that could impact gross margins, Flutter has historically mitigated around 50% of such impacts, showcasing its resilience and strategic management capabilities.
Additionally, Flutter’s potential involvement in the Italian lottery market could open new revenue streams, although the incremental cross-sell value might be limited. Furthermore, the company’s projected financial performance for FY25, with expected US revenue and adjusted EBITDA figures slightly above consensus estimates, indicates strong growth potential. These elements collectively contribute to the positive outlook and justify the Buy rating.
In another report released on February 26, Truist Financial also initiated coverage with a Buy rating on the stock with a $330.00 price target.