At Extreme Investor Network, we believe that now is the perfect time for investors to capitalize on the recent sell-off of Flutter Entertainment stock. In a recent upgrade by Wells Fargo analyst Daniel Politzer, shares of the online sports betting company have been upgraded to overweight from equal weight. This upgrade comes after the stock dropped 8.8% on Friday due to reports of potential higher taxes on the gambling industry in the U.K.
Politizer highlights that despite the near-worst case UK tax scenario, Flutter Entertainment’s management remains realistic about gaming taxes, with a firm grasp on its attractive positioning in the UK industry. With the company holding the top spot overall with a 30% market share, larger operators like Flutter have historically been able to navigate through costly regulatory changes better than smaller competitors.
Furthermore, Wells Fargo has raised the firm’s price target to $295 from $224 a share, indicating a 34% potential upside from Friday’s close. And with key performance indicators showing promising results, including expectations for 15% to 17% revenue growth at a compounded annual growth rate through 2027, Flutter Entertainment appears to be on a strong growth trajectory.
But it’s not just Wells Fargo that is bullish on Flutter Entertainment. Bank of America analyst Adrien de Saint Hilaire has reinstated coverage of the company with a buy rating. Saint Hilaire points to FanDuel’s unique positioning and the robust market environment as drivers for stronger-than-expected EBITDA growth.
At Extreme Investor Network, we see Flutter Entertainment’s recent U.S. listing as a strategic move away from European gambling and into the U.S. consumer Internet market, which could lead to a reevaluation of the company’s valuation. Despite Flutter’s similar or even better business and financial characteristics compared to its new peers, the stock currently trades at a 35% discount, presenting a strong potential for re-rating.
With all these factors in mind, now is the time for investors to consider Flutter Entertainment as a promising investment opportunity. Don’t miss out on the potential gains as the stock continues to show strong growth prospects in the online sports betting industry. Stay ahead of the curve with Extreme Investor Network for the latest insights and opportunities in the world of investing.