• Earlier this week, Jefferies analysts said Flutter Entertainment may be at an inflection point as worries about prediction market competition ease, citing recovering online sports betting trends and minimal evidence of share loss.
• Jefferies also highlighted potential new profit streams from market-making, FanDuel Predicts and regulatory leverage tied to prediction markets, which could reshape how investors view Flutter’s earnings mix.
• Next, we’ll explore how Jefferies’ focus on new profit streams like market-making and FanDuel Predicts may influence Flutter’s investment narrative.

Find 49 companies with promising cash flow potential yet trading below their fair value.

Flutter Entertainment Investment Narrative Recap

To own Flutter, you need to believe its U.S. and international betting brands can turn scale into consistent profits while managing regulation, debt and competition. The Jefferies call that prediction market fears are easing supports the near term catalyst around improved U.S. profitability, but it does little to change the biggest risk today, which is margin pressure from higher taxes and regulatory costs in key markets.

The recent decision to delist from the London Stock Exchange and focus on the NYSE listing feels most relevant here, as it sharpens Flutter’s U.S. investor profile just as Jefferies is highlighting FanDuel Predicts and market making as potential earnings drivers. Whether that listing shift helps support the catalyst of stronger U.S. performance without masking ongoing leverage and regulatory headwinds is something I will be watching closely.

Yet beneath Jefferies’ optimism, investors should be aware that rising gaming taxes and fees could still...

Flutter Entertainment's narrative projects $22.5 billion revenue and $1.3 billion earnings by 2029. This requires 9.7% yearly revenue growth and about a $1.7 billion earnings increase from -$375.0 million today.

Uncover how Flutter Entertainment's forecasts yield a $157.48 fair value, a 46% upside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts were assuming revenue could reach about US$26.0 billion and earnings US$2.7 billion by 2029, which is far more upbeat than the risk that heavy FanDuel Predicts investment fails to convert customers, so you should see Jefferies’ latest comments as one more data point that might shift those expectations rather than a final verdict.

Explore 4 other fair value estimates on Flutter Entertainment - why the stock might be worth over 2x more than the current price!

Reach Your Own Conclusion

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Flutter Entertainment research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Flutter Entertainment research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Flutter Entertainment's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.