Jefferies Equity Research analyst James Wheatcroft placed a “Buy” rating on Flutter Entertainment stock after a slump in the share price. “Today’s weakness in Flutter’s shares is an overreaction to prediction market developments,” he chided the market.
Shares in online sports betting providers such as Flutter, corporate parent of FanDuel, had taken a beating in the wake of Kalshi’s venture into single-game parlays, trumpeted during a Monday Night Football doubleheader. The Kalshi product allows for three-legged parlays on touchdown scorers, point totals and the result of the game.
“Recall, prediction market operators have made headlines in recent months … but have lacked the product depth of online sports betting operators,” Wheatcroft recapped. He noted that the newest Kalshi offering was an incursion on the kind of parlay wagering that represents 70% of Flutter’s income, “albeit with limiting features.”
