Among the UK stocks, FTSE 100-listed Flutter Entertainment PLC (GB:FLTR) has retained its Strong Buy rating from analysts following its annual results for 2023. The company reported a 24.6% jump in its revenues to $11.8 billion and a 20.3% increase in its average monthly players compared to the previous year. The company continued to ride high with its strong performance in the U.S.
Post-results, analysts hold optimistic views about the company’s prospects and have confirmed their Buy ratings on the stock. Among the 15 analysts covering the stock, 14 have rated the stock as a Buy, indicating a sweeping bullish sentiment. Analysts are upbeat about the company’s dominant position in the U.S., which is expected to drive more profitability in the future.
Flutter Entertainment is a sports betting and gaming company that owns brands like Paddy Power, FanDuel, PokerStars, Betfair, etc.
Highlights from the 2023 Results
For the full year that ended on December 31, 2023, adjusted EBITDA increased by 47% to $1.68 billion, up from $1.14 billion reported in 2022. FanDuel, Flutter’s flagship brand, holds the top position in the U.S. online sportsbook market and continues to expand its share of the iGaming market. FanDuel achieved its first year of positive further adjusted EBITDA, amounting to $167 million. Overall, the U.S. region contributed revenue of $4.5 billion with 3.2 million of average monthly players in 2023.
On the flip side, the company also reported a net loss of $1.2, largely due to non-cash charges, including $725 million of impairment of PokerStars’ trademark.
Analysts’ Reactions
Last week, analyst Kiranjot Grewal from Bank of America Securities reiterated her Buy rating on the stock, predicting an upside of 24%. Grewal asserts that Flutter’s FanDuel business positions it favourably to seize market share in the evolving U.S. sports betting market. Additionally, Bank of America Securities has picked Flutter as the “Key Stock Pick for 2024” in the European Media and Gaming sector.
Similarly, Ben Andrews from Goldman Sachs also remains bullish on the company’s U.S. division. He believes its U.S. business will emerge as the main catalyst for earnings expansion for the company. He projects that the group’s EBITDA will double over the upcoming three years (2023–26).
Is Flutter Entertainment a Good Buy?
According to TipRanks consensus, FLTR stock has received a Moderate Buy rating based on 14 Buy and one Hold recommendations. The Flutter share price target is 18,751.6p, which is 18.8% above the current level.
