FanDuel isn’t publicly traded, but the investment community got an indirect look into its finances today. That view came courtesy of a J.P. Morgan analyst note on FanDuel parent Flutter Entertainment.
Lead Morgan analyst Estelle Weingrod raised Flutter to “overweight,” setting a price target of £213. She wrote that this move was “primarily driven by our more positive stance” on the United States, as FanDuel comprises 40 percent of Flutter’s overall revenue. Indeed, Weingrod credited FanDuel with 80 percent of the motivation of her rating boost.
Noting the state-by-state progress of igaming legalization, Weingrod said that Morgan analysts “now feel increasingly confident about the TAM opportunity crystallizing.” She anticipated “further market-share gains, including within igaming, which remains underappreciated by the market.”
The analyst wrote that FanDuel was coming off a strong 2023, one that affirmed the company’s position in the U.S. market, “demonstrating leaps of progress and the resilience of the business model … which should drive further upside potential for the shares.”
Weingrod hailed the company’s fundamentals, which were “underpinned by superior offering and scale.” Such fundamentals include Flutter’s “market leadership across key geographies,” plus its size, brand recognition, and product quality. Flutter’s strength, she continued, “puts it in a favorable spot to capture growth opportunities across markets, while keeping it well-positioned to efficiently tackle regulatory headwinds.”
As for FanDuel specifically, its potency was proven by its strong market position in both U.S. sports betting and icasino, according to the report. Weingrod explained that FanDuel’s “superior product/tech stack continues to drive enhanced hold rates through leading adoption of high-margin products (parlays, live [wagering]) and improve generosity effectiveness, leading to improved engagement and monetization of its customer base.”
In other FanDuel news, the company secured the primary sports wagering contract in Washington, D.C, taking over from the much-criticized Intralot. The FanDuel transition will happen, according to news reports, “sometime this spring.”
