RBC Capital downgrades Flutter Entertainment after strong run
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.
"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.