Key Takeaways:
- Flutter Entertainment adopts a transaction fee to mitigate the impact of Illinois' increased online sports betting tax.
- Analysts expect this initiative might set a precedent for other operators, like DraftKings.
- Despite regulatory challenges, analysts predict significant growth potential for Flutter Entertainment.
Introduction
Amidst growing regulatory costs, Flutter Entertainment (FLUT, Financial) has strategically chosen to implement a transaction fee, following the hike in Illinois' taxes on online sports betting, effective from July 1. This move has sparked discussions among analysts about its potential ripple effect on other industry giants, such as DraftKings, possibly reshaping how regulatory expenses are managed throughout the sector.
Wall Street Analysts Forecast
Flutter Entertainment PLC (FLUT, Financial) is gaining attention from analysts, with 22 providing one-year price targets. Their consensus indicates an average target price of $300.87, with a high of $346.00 and a low of $234.00. This average target suggests a noteworthy upside potential of 12.88% from the current stock price at $266.54. For a more in-depth price analysis, visit the Flutter Entertainment PLC (FLUT) Forecast page.
Brokerage firms show a favorable outlook, with the average recommendation from 21 firms landing at 1.9, falling under the "Outperform" category. The brokerage rating system ranges from 1 (Strong Buy) to 5 (Sell), emphasizing the positive sentiment towards Flutter Entertainment.
Future Valuation: GF Value Estimation
Investors looking at the long-term growth of Flutter Entertainment will find the GuruFocus GF Value estimation particularly insightful. According to GuruFocus, the GF Value for Flutter Entertainment PLC (FLUT, Financial) in one year is estimated at $315.84, indicating an upside of 18.5% from the current trading price of $266.54. The GF Value is calculated using the stock's historical trading multiples, past growth metrics, and projected future performance. For additional insights, refer to the Flutter Entertainment PLC (FLUT) Summary page.
As the financial landscape evolves, Flutter Entertainment's proactive approach in response to regulatory changes, coupled with positive analyst forecasts, positions it as a promising contender in the online sports betting industry.
