Welcome to Extreme Investor Network, where we provide unique insights and expert analysis on the world of investing. Today, we are excited to share information about the online betting giant Flutter Entertainment and its strategic move to solidify its corporate presence in the U.S.
Flutter Entertainment, the Dublin-based parent company of FanDuel, recently launched a secondary listing of its shares on the New York Stock Exchange, with shareholders voting to make the NYSE the primary listing effective May 31. This shift could help put Flutter’s stock on par with its sports gambling rivals in terms of trading liquidity and valuation, according to UBS analyst Ben Shelley.
While Flutter is a major player in the sports betting industry in the U.S. and abroad, its U.S.-traded shares have been less actively traded and undervalued compared to competitors like DraftKings. By transitioning to a primary listing on the NYSE, Flutter aims to attract more U.S. investors and increase trading activity, similar to the success seen by other companies like CRH and Ferguson after making the switch.
It’s important to note that Flutter’s business is not a direct comparison to other sports betting companies, as it also operates a large international business with brands like Paddy Power. Despite the complexity of its operations, UBS believes that Flutter’s ex-U.S. business presents hidden value for investors due to its strong market positions and free cash flow generation potential.
As of now, shares of Flutter are up 15% year to date, with room for growth as the company continues to expand and solidify its presence in the competitive U.S. sports betting market. Stay tuned to Extreme Investor Network for more exclusive insights and analysis on the latest investment opportunities and trends in the market.
