Bernstein has begun its analysis of Flutter Entertainment (FLUT, Financial), assigning the company a Market Perform rating. The financial services firm has also set a price target of $275 for the stock. This evaluation marks a neutral stance, suggesting that Flutter Entertainment's performance is expected to align with the overall market trends. Investors are encouraged to closely monitor this stock as Bernstein's coverage could influence future market perceptions and investment decisions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 22 analysts, the average target price for Flutter Entertainment PLC (FLUT, Financial) is $301.60 with a high estimate of $346.00 and a low estimate of $234.00. The average target implies an upside of 22.32% from the current price of $246.57. More detailed estimate data can be found on the Flutter Entertainment PLC (FLUT) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, Flutter Entertainment PLC's (FLUT, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Flutter Entertainment PLC (FLUT, Financial) in one year is $315.84, suggesting a upside of 28.09% from the current price of $246.57. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Flutter Entertainment PLC (FLUT) Summary page.
FLUT Key Business Developments
Release Date: May 07, 2025
- Net Income Growth: 289% year-over-year increase in Q1.
- Adjusted EBITDA Growth: 20% year-over-year increase in Q1.
- Group Revenue Increase: 8% growth in Q1.
- Earnings Per Share: Increased to $1.57 from a loss of $1.10.
- US Revenue Growth: 18% year-over-year increase.
- Sportsbook Growth: 15% increase despite adverse March Madness outcomes.
- iGaming Growth: 32% increase in the US.
- Adjusted EBITDA (US): $161 million, more than 5 times higher than the prior year.
- International Revenue: $2 billion with constant currency growth of 3%.
- International Adjusted EBITDA: $518 million with constant currency growth of 2%.
- Net Cash from Operating Activities: Reduced by 44% year-over-year.
- Free Cash Flow: Reduced by 52% year-over-year.
- Available Cash: Approximately $1.5 billion, unchanged quarter-on-quarter.
- Net Debt: $5.3 billion with a leverage ratio of 2.2 times.
- Share Repurchase Program: 891,000 shares repurchased for $230 million in Q1.
- 2025 Revenue Guidance: Expected to be $17.08 billion at the midpoint.
- 2025 Adjusted EBITDA Guidance: Expected to be $3.18 billion for the year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Flutter Entertainment PLC (FLUT, Financial) reported a significant year-over-year net income growth of 289% and adjusted EBITDA growth of 20% in Q1 2025.
- The company's US business is driving a step change in earnings, with AMPs growing to more than 4.3 million in the quarter.
- Flutter's international business demonstrated strong performances, particularly in SEA and India, contributing to overall revenue growth.
- The acquisition of SNAI in Italy is expected to rapidly realize operational and financial benefits, enhancing Flutter's scale in the region.
- Flutter's proprietary pricing capability continues to drive market-leading sportsbook products, with a structural gross revenue margin progression reaching 14.1% in the quarter.
Negative Points
- Basketball handle growth was lower than anticipated, impacting overall sports betting performance.
- The company faced challenges in Brazil due to regulatory changes, affecting customer activation and registration processes.
- US sports results were customer-friendly in Q1, driven by an unprecedented number of winning favorites during March Madness, impacting revenue.
- Net cash from operating activities decreased by 44%, and free cash flow reduced by 52% year-over-year, impacted by a decrease in player deposit liabilities.
- The company is facing structural challenges in the Australian racing industry, affecting racing handle trends.
