On Monday, Citizens JMP analyst Jordan Bender revised the price target on shares of Flutter Entertainment (NYSE:FLUT) to $317.00, down from the previous target of $328.00. Despite this adjustment, Bender retained a Market Outperform rating for the company. According to InvestingPro data, Flutter shares have shown remarkable strength with an 8.7% gain over the past week, though they currently trade at premium valuations with a P/E ratio of 970x. The revision comes in anticipation of Flutter Entertainment’s first-quarter earnings report for 2025, which is expected to reflect an earnings miss attributed to adverse game outcomes.
Bender’s analysis suggests that these unfavorable results in March had a negative $110 million impact on the company’s EBITDA, even after accounting for promotional activities. This impact is significant considering Flutter’s current EBITDA of $1.97 billion. This led to a 14% reduction in the overall EBITDA estimate for the quarter, which is 12% lower than the consensus. However, Bender noted that Flutter Entertainment has made gains in market share within its iGaming business, increasing by 60 basis points quarter-over-quarter and approximately 600 basis points over the past two years, supporting the company’s impressive 19.2% revenue growth over the last twelve months.
Despite the challenges posed by the volatility of sports results, which have prompted negative estimate revisions in recent quarters, Bender remains optimistic about Flutter’s position in the online gaming sector. He identifies the company as a leading player with potential for continued growth throughout 2025. With a market capitalization of $41.3 billion and a "GOOD" financial health score from InvestingPro, Flutter continues to demonstrate strong fundamentals. Bender highlighted the upcoming acquisitions of Snai in Italy and NSX in Brazil, which are expected to close later in April and by the end of the second quarter of 2025, respectively. These strategic moves are projected to support an 18% revenue growth in the second half of 2025 for Flutter’s newly established international division. For deeper insights into Flutter’s growth prospects and 12 additional exclusive ProTips, visit InvestingPro.
In other recent news, Flutter Entertainment has completed its acquisition of Snaitech S.p.A., as disclosed in a Form 8-K filing with the U.S. Securities and Exchange Commission. This strategic purchase is part of Flutter’s ongoing expansion efforts, although the financial terms were not disclosed. Additionally, Flutter Entertainment announced that board member Atif Rafiq will not stand for re-election due to other commitments, as noted in a filing with the SEC. This decision is not linked to any disagreements with the company. Furthermore, Flutter has disclosed its total voting rights in compliance with UK regulatory requirements, ensuring transparency with its shareholders. The company also announced a block listing of its ordinary shares, a routine procedure to facilitate share issuance. Meanwhile, Barclays highlighted shifts in the online sports betting and iGaming sectors, noting that FanDuel, a key player under Flutter, experienced gains in gross gaming revenue and net gaming revenue shares. These updates reflect Flutter Entertainment’s active engagement in strategic growth and regulatory compliance.
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