What Happened?
Shares of global online betting powerhouse Flutter Entertainment (NASDAQ: FLUT) jumped 4.4% in the afternoon session after Citi analyst Monique Pollard upgraded the company from a Neutral rating to a Buy rating. According to StreetInsider, Susquehanna analyst Joseph Stauff separately cut his price target to $100 from $115 and kept a Positive rating. He said third-quarter profit is likely to be lower and that the weaker result is already discounted. The stock, he said, is most sensitive to FanDuel’s recovery in online sports betting, where he sees progress. He pointed to heavier competition, including from prediction markets, higher taxes in states such as Illinois, Ohio, Maryland, New Jersey, and Louisiana, and fewer new state launches than in prior years. A strong showing on operating metrics, he said, would support the view that FanDuel’s sportsbook has stabilized.
After the initial pop, the shares cooled down to $79.10, up 4.3% from the previous close.
Is now the time to buy Flutter Entertainment? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Flutter Entertainment’s shares are very volatile and have had 23 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 3.1% on the news that Citi analyst Monique Pollard upgraded the stock from a Neutral rating to a Buy rating. Citi analyst Monique Pollard upgraded the shares in research carried by StreetInsider, marking a notable reversal from a former skeptic who double-downgraded Flutter to Sell in April before stepping to Neutral in August. In an analysis cited by TipRanks, Pollard had observed that consensus expectations required a substantial reset, which materialized after management lowered mid-term projections. Severe selling pressure pushed Flutter down over 65% year to date to a 52-week low of $73.50, exacerbated by the recent halt of its Brazilian operations. With international headwinds and estimate cuts already depressing the multiple, the upgrade reflects a view that downside risks are largely priced in alongside steady U.S. market share for FanDuel.
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
