RBC Capital downgrades Flutter Entertainment after strong run
Flutter Entertainment (DI)
16,055.00p
15:05 08/05/24
RBC Capital Markets downgraded Flutter Entertainment on Tuesday to ‘sector perform’ from ‘outperform’ and trimmed the price target to 120p from 125p following a strong run.
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"While we continue to like the fundamentals of the company, we believe the key positives (benefits from the Stars acquisition & strong positioning in the US) are well known," RBC said. It noted the stock is trading at 23x FY22 price-to-earnings estimates, above the top end of its 13-22x range.
"We wait for additional catalysts in future," it said.
"We continue to believe Flutter is a high-quality operator, with the game-changing acquisition of Stars catapulting it into becoming a more diversified, global-scale player. Furthermore, FanDuel has had a flying start in the US. The stock has had a great run, and we believe the positives are well known."
At 1030 GMT, the shares were down 1.2% at 12,345p.