FLUT Stock Forecast & Price Target

Flutter Entertainment's strong performance is reflected in its EBITDA, which exceeded expectations by 23% and exhibited a year-over-year increase of 10%, supported by revenues of $2,426 million. The company demonstrated substantial user acquisition growth, with average monthly users rising by 30% year-over-year, indicating significant market penetration potential. Furthermore, the anticipated launch of a predictive sports betting platform in late 2025 alongside continued improvements in iGaming growth trajectory positions Flutter for sustained top-line growth of 10-20% over the next several years, accompanied by even higher margins at the EBITDA and free cash flow per share levels.

Flutter Entertainment has experienced a decline in its sportsbook net revenue margin, which decreased to 12.4%, attributed to a shift in revenue mix towards lower-margin regions and unfavorable sports results impacting performance. There is evidence of a deceleration in handle trends, particularly in October, alongside consistent competitor promotions that are driving significant share loss, particularly during the NFL season. Additionally, the company's EBITDA guidance has been lowered and is now projected to be at the lower end of market expectations, reflecting challenges from elevated promotional spending by competitors and recent regulatory changes.