Jefferies Highlights Flutter Entertainment’s Resilience and Growth Opportunities

Jefferies Recommends Flutter Entertainment Amid Market Uncertainty

Jefferies has reaffirmed its confidence in Flutter Entertainment, the parent company of FanDuel, by initiating coverage with a “Buy” recommendation. The firm has set an ambitious target price of $380 per share, signaling a potential 35% increase from the stock’s recent closing value, making it one of the more optimistic ratings on Wall Street.

Strong Online Presence and Global Reach Shield Flutter from Economic Challenges

Analyst James Wheatcroft from Jefferies highlights Flutter’s resilience in the face of economic downturns, attributing this strength to the company’s heavy digital focus—over 90% of its revenue is generated online—and its extensive international footprint. According to Wheatcroft, the nature of online betting provides a buffer against typical economic fluctuations, reducing Flutter’s exposure to recession risks. He also emphasizes the company’s solid financial health, noting manageable debt levels and a consistent stock repurchase program as key advantages.

While there are concerns about a slowdown in U.S. sports betting growth, Wheatcroft clarifies this trend largely reflects strategic adjustments by Flutter, including reduced promotional spending and product refinements, rather than a fundamental industry weakness.

Beyond its dominant position in the U.S. market with FanDuel, Flutter’s international operations present significant growth potential that may be underappreciated by investors, particularly outside North America.

Global Expansion and Market Position Strengthen Growth Prospects

Despite some earlier reports of market share challenges, Jefferies believes Flutter remains well-positioned for growth in pivotal markets such as the United Kingdom, Italy, Australia, and Brazil. Regulatory changes and recent acquisitions support this optimistic outlook.

Flutter has expanded its global presence through strategic acquisitions, including Italy’s Snai and a major stake in Brazil’s NSX Group, enhancing its foothold in two of the world’s largest gaming markets.

Additional factors fueling Jefferies’ positive outlook include the possibility of Flutter’s inclusion in major U.S. stock indices and the continuous evolution of its YourWay platform. The firm forecasts robust financial growth, expecting average annual EBITDA growth of 17% and a 31% increase in sales over the next three years—estimates that they believe the broader market has yet to fully recognize.

Wheatcroft asserts that Flutter’s current valuation is justified given these benefits. He points out that, even when valuing its U.S. operations higher than competitors like DraftKings, the stock remains attractively priced. The $380 price target reflects the anticipated growth potential in the U.S. market supported by strong cash flow and shareholder returns.