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Flutter Entertainment’s consensus analyst price target has edged down from $345 to $340. Analysts cite softer-than-expected sports betting margins in September, despite earlier quarter strength, as the primary rationale for the revision.

Analyst Commentary

Recent analyst notes on Flutter Entertainment present a mix of optimism and caution, reflecting both the company's strong execution and the challenges ahead. The majority of research emphasizes solid Q2 results and growth opportunities. Analysts also flag headwinds related to market developments and margin pressures.

• Bullish analysts raise price targets in response to Flutter's robust Q2 performance. Ongoing strength in the U.S. market is supporting higher full-year guidance.
• Flutter's partnership strategy is highlighted as thoughtful and efficient. This positions the company to capitalize on opportunities in the evolving prediction markets space without excessive cost or regulatory risk.
• The company's diversified offerings and superior pricing, especially across parlays and player props, are seen as key differentiators. These factors help defend market share even amid new competitors and products.
• Many expect continued EBITDA and revenue growth over the next several years, with catalysts such as ongoing share buybacks, product innovation, and potential index inclusions seen as supportive to the stock's valuation.

• Bearish analysts caution that September was a particularly challenging month for sports betting margins. Unfavorable game outcomes and player props are likely to drag actual margins below expectations for the quarter.
• There are concerns around heightened state taxes and legislative changes, which could offset earnings improvements and introduce ongoing uncertainty for the group.
• Some warn that the proliferation of new prediction market entrants could add pressure to maintain growth rates, even though direct impact on market share may be limited.
• Analysts note that recently revised outlooks and sector-wide headline risks, such as regulatory pressures and slowing handle growth, could temper valuation multiples if challenges persist into future quarters.

What's in the News

• Flutter Entertainment is reportedly in advanced discussions to acquire an additional 5% stake in FanDuel from Boyd Gaming for close to $2 billion. An agreement may be announced soon (Sky News).
• Jefferies analysts note that DraftKings is likely to enter the prediction markets sector following Flutter's partnership with CME Group. DraftKings could pursue a different approach by acquiring Railbird (Jefferies via research note).
• Flutter has completed repurchasing 2.59 million shares for $651.27 million as part of its ongoing buyback program. This represents 1.46% of total shares (Company filing).
• The company has raised its 2025 revenue guidance to $17,260 million, up from previous expectations of $17,080 million (Company announcement).

Valuation Changes

• Consensus Analyst Price Target (Fair Value) has fallen slightly, decreasing from $345.10 to $341.53.
• Discount Rate has edged down marginally, moving from 8.97% to 8.97%.
• Revenue Growth expectations have risen slightly to 16.53% from the prior 16.44%.
• Net Profit Margin forecast has decreased modestly to 10.24% from 10.53%.
• Future P/E ratio has increased, moving from 30.66x to 31.14x.