FLUT Stock Forecast & Price Target

Flutter Entertainment demonstrated a strong financial performance with EBITDA surpassing both internal models and consensus by 23% and 2% respectively, while the company achieved a year-over-year revenue increase of 10%, totaling $2.426 billion. User acquisition fueled growth, evidenced by a 30% year-over-year rise in average monthly players, as management highlighted significant potential for further population penetration and product launches. The company also signaled positive trends in operational metrics, with online sports betting handle expected to accelerate from 6% to 10%, coupled with a structural hold expansion, suggesting a solid foundation for sustained future growth.

Flutter Entertainment's financial outlook is challenged by several key metrics indicating declining performance. The sportsbook net revenue margin fell by 30 basis points year-over-year to 12.4%, primarily due to a shift towards lower-margin regions and unfavorable sports results, compounded by intensified competition leading to increased promotional spending pressure. Additionally, the company experienced an EBITDA miss of approximately $30 million, alongside guidance reductions for both revenue and EBITDA, attributed to competitive dynamics and regulatory challenges, signaling potential struggles in maintaining market share in the increasingly competitive online gaming sector.