FanDuel parent Flutter Entertainment is poised for even more gains ahead as its U.S. growth takes off, according to Goldman Sachs. Analyst Ben Andrews initiated coverage of the online sports betting operator with a buy rating and $320 price target. That implies nearly 20% upside from Thursday's close. Flutter shares are up 49% year to date, outperforming the broader market since the company listed on the New York Stock Exchange — its first U.S. listing — on Jan. 29. It kept its primary listing on the London Stock Exchange. "We have built a new proprietary player cohort framework for Flutter's US business that analyses and forecasts the evolution of individual player cohorts in the US," Andrews said in a note to clients. "Our new deep dive on cohort revenue dynamics points to US revenue compounding at a > 20% CAGR and more than tripling US EBITDA over 2024-27E." Andrews sees upside to Flutter's 2027 revenue guidance for existing states and sees double-digit percentage upside to Wall Street's consensus targets on Flutter's U.S. EBITDA in 2027 and 2028. Some catalysts that can drive the stock higher are stronger U.S. margins along with the possibility of deploying capital through mergers and acquisitions — as well as share buybacks, Andrews said. He also sees "a re-rating supported by potential inclusion in major US indices (e.g. S & P) and Flutter building a track record of consistent delivery and as a compounding cash generator." Flutter also has growth opportunities in the states it already operates in, as spending per player increases through growing product offerings and promotions, he said. The company continues to acquire new customers in existing states, which "Flutter is doing more efficiently than competition, supported by their scale," Andrews said. FLUT YTD mountain Flutter Entertainment performance this year.
