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In recent days, Apptopia released an investor note analyzing mobile app engagement for FanDuel Sportsbook alongside key competitors, while analysts weighed concerns about competition, profitability, and slowing betting handle growth for Flutter Entertainment.
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At the same time, DraftKings’ record Q4 revenue but guidance excluding its prediction market product has sharpened focus on how maturing U.S. betting trends could influence Flutter’s long-term opportunity set.
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Next, we’ll explore how intensified scrutiny of Flutter’s profitability and competitive position could alter the company’s previously optimistic investment narrative.
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To own Flutter today, you need to believe that FanDuel’s scale in U.S. sports betting and iGaming can translate app engagement into sustainable profits despite intense competition and ongoing regulatory and tax pressure. The recent Apptopia data and DraftKings update sharpen focus on how a maturing U.S. market affects Flutter’s key near term catalyst: improving profitability. They also reinforce the biggest current risk, that slowing betting handle growth and higher costs keep margins under pressure for longer.
Against this backdrop, Canaccord’s February 3 price target cut to US$270, while keeping a positive rating, is particularly relevant. The firm framed Flutter’s sharp share price slide and worries over slowing state handle data as an overreaction, arguing that lower expectations could reset the bar for any future improvement in profitability and cash generation, even as short term earnings risk remains firmly in view.
Yet beneath that potential upside, the real concern investors should be aware of is how sustained promotional intensity and rising taxes could quietly reshape Flutter’s profit potential…
Read the full narrative on Flutter Entertainment (it’s free!)
Flutter Entertainment’s narrative projects $23.5 billion revenue and $2.5 billion earnings by 2028.
Uncover how Flutter Entertainment’s forecasts yield a $274.56 fair value, a 119% upside to its current price.
Some of the lowest tier analysts were already cautious, assuming revenue of about US$22.9 billion and earnings of US$1.3 billion by 2028, which could prove too optimistic if prediction market investments and tougher unit economics bite harder than they expected.
Explore 5 other fair value estimates on Flutter Entertainment – why the stock might be worth over 3x more than the current price!