Despite slashing his price target on Flutter Entertainment, one analyst stood by the embattled stock. James Wheatcroft of Jefferies Equity Research cut his per-share target on Flutter from US$380 to US$210. The stock was trading at US$112.68 at the time of Wheatcroft’s 6 March report.
Wheatcroft kept a “Buy” rating on Flutter, saying he was staying positive and saw “an appealing set-up.” However, he priced no US growth into his valuation of the stock.
“We view handle declines as transitory,” Wheatcroft wrote, “with state data reports and material prediction market entry likely to catalyze investor re-engagement and a positive re-rating.” He added that “a conflation of handle decline and estimate downgrades fomented the notion of prediction markets as a structural threat to” online sports betting.”
