Analysts Stay Positive, Flutter Entertainment Stock Increases by 5%
The well-known gambling and gaming company Flutter Entertainment saw a notable increase in its stock value. Despite facing more competitors, their brand FanDuel remains the top leader in the USA market, and their investments abroad are also bringing in significant profits. This advancement aligns with Flutter’s decision to transition to the New York Stock Exchange after ceasing trading of their regular shares on Euronext Dublin by January 23rd.
There are significant opportunities present in the US market.
The significant rise of 5% in the company’s stock price can be attributed to Peel Hunt’s positive outlook on the company’s future, specifically its FanDuel brand. The investment firm predicts that Flutter’s operations in the US will generate a adjusted EBITDA of $180 million in 2023. In the following year, the company is expected to solidify its presence in established markets and further capitalize on profitable opportunities.
Peel Hunt’s prediction for Flutter is in line with the company’s guidance from November. They anticipate an adjusted EBITDA of around £1.44 billion ($1.83 billion) without including the US market, and revenue of £3.75 billion ($4.77 billion) from the US. Despite these impressive numbers, Flutter’s stock has dropped by more than 10% in the past six months due to concerns about regulations in the UK and Australia.
Flutter’s recent advancements demonstrate its growing dependence on the US market, which experienced substantial growth in 2023 and is expected to continue being the primary source of revenue for the company. Although Sisal, a subsidiary of Flutter, also shows promise with its lottery business, which has been a notable success in the company’s global sector by successfully penetrating emerging markets.
Overseas Operations Remain Vital
Flutter Entertainment plans to list its shares on the New York Stock Exchange on January 29, 2024, pending regulatory approval. This decision supports the company’s strategy, as it reported that more than 30% of its third quarter revenue in 2023 came from the growing US market.
On the other hand, the gambling company’s upcoming departure from the Dublin Stock Exchange will simplify its processes and reduce regulatory challenges. Flutter’s regular stocks will no longer be available for trade on Euronext Dublin after 23 January 2024. Nonetheless, the firm will maintain its presence on the London Stock Exchange, emphasizing its significant investments in the region.
Experts predict that positive trends in the industry could continue to boost Flutter’s stock as it catches the attention of investors in the US. With a diverse portfolio spanning the globe, the company is well-positioned to take advantage of new developments and achieve long-term, sustainable growth. While the industry may face challenges in 2024, Flutter is well-prepared to leverage its strengths.
