On Wednesday, Benchmark analysts maintained a Buy rating and a $252.00 price target for Flutter Entertainment (LON:FLTRF) (NYSE:FLUT) shares. The firm's analysts commented on the company's fourth-quarter performance, which was notably impacted by unfavorable NFL results.
Flutter Entertainment disclosed a substantial $438 million hit to its Gross Gaming Revenue (GGR) due to customer-friendly outcomes in NFL games. Consequently, the company has adjusted its 2024 US revenue projections downward by $370 million and reduced its Adjusted EBITDA expectations by $205 million from its prior forecasts.
Despite these adjustments, Flutter Entertainment has expressed confidence in its long-term growth potential, attributing the recent results to temporary factors. Benchmark's analysts echo this sentiment, suggesting that the current weakness could represent a strategic buying opportunity for investors.
The analysts project that Flutter's fiscal 2025 Adjusted EBITDA will reach $2,958 million. Applying an 18.5x multiple to this estimate, Benchmark has reaffirmed the $275 price target and reiterated their Buy rating on the stock.
The report from Benchmark comes after Flutter provided an update on its Q4 performance, which included the significant adverse impact from the NFL results. The revision in revenue and EBITDA forecasts reflects the company's recalibrated expectations following these events. Despite this, the analysts at Benchmark remain optimistic about Flutter's near-term and long-term growth prospects.
Flutter Entertainment is a global sports betting, gaming, and entertainment provider, widely recognized for its diverse portfolio of brands and products. The company's performance in the US market is a critical component of its overall strategy, and the recent NFL season's outcomes have presented an unexpected challenge.
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