Flutter Stock Undervalued After Q4 Results, Guidance: Analyst Says 'Earnings Transformation' Underway

Flutter Entertainment FLUT analysts highlight the sports betting and iGaming market share growth of the company after fourth-quarter financial results and guidance.

The Flutter Analysts: Citizens analyst Jordan Bender maintained a Market Outperform rating on Flutter and raised the price target from $311 to $328.

Benchmark analyst Mike Hickey reiterated a Buy rating and raised the price target from $275 to $300.

Needham analyst Bernie McTernan reiterated a Buy rating and raised the price target from $300 to $310.

Citizens on FLUT: The sports betting and iGaming company is in the early stages of "substantial earnings power," Bender said in a new investor note.

The analyst said Flutter is the top way to own gaming.

"In a tough quarter for the U.S. business, it still increased market share for both iGaming and sports betting, and early 1Q25 results imply further market share gains across both business segments," Bender said.

The analyst said acquisitions in international markets and the launch of legalized sports betting in Missouri and potentially Alberta, Canada, could improve guidance.

"Consumer stocks are under pressure with the global macro headwinds, yet the company continues to see organic revenue and EBITDA grow meaningfully above similar comps."

Bender said the company's strong balance sheet opens the door for more M&A activity.

Benchmark on FLUT: The company's FanDuel business had strength in the quarter, Hickey said in a new investor note.

"The company achieved significant earnings transformation, with AEBITDA increasing 26%, driven by the rapid scaling of its U.S. business," Hickey said.

The analyst said early first-quarter results show a strong Super Bowl performance offsetting negative NFL results in January.

"The guidance reflects continued U.S. market expansion, the integration of strategic acquisitions, and a robust outlook for international markets."

New launches in Missouri and Alberta could impact EBITD, but are part of long-term market share growth, the analyst said.

Needham on FLUT: Despite tough comparable sales and foreign exchange currency concerns, McTernan is raising the price target on Flutter stock.

"U.S. handle trends have been a focus for investors, and 1Q growth is reaccelerating from 4Q levels," McTernan said.

The fourth quarter was impacted by one less week of the NFL season and a slowing of new state launches.

FanDuel rolling out YourWay is driving engagement in the early stages, McTernan said.

"FLUT has still yet to market the product aggressively, but thinks it can drive higher hold, engagement, and frequency for users. In addition, FLUT is in the early stages of rolling out YourWay for the NBA."

McTernan said Flutter is positioned to be the leader in U.S. online sports betting and iGaming. The analyst said the total addressable market size for the U.S. market is larger than anticipated, benefitting Flutter.

"We see significant earnings power for the consolidated business if this thesis plays out."

FLUT Price Action: Flutter stock is up 1.06% to $268.96 on Wednesday versus a 52-week trading range of $174.03 to $299.73. Flutter stock is up 4.2% year-to-date in 2025 and up 24% over the past year.

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