Flutter Stock Dips but Analysts See Recovery Ahead

Key Takeaways
Flutter Entertainment (NYSE: FLUT) has experienced a significant stock price decline due to a broad market sell-off. However, analysts see potential for a recovery. Flutter’s strong market position, particularly through FanDuel in the U.S., along with solid financial stability, could support the stock price in the long run.
Current Market Situation of Flutter Entertainment
Like many other gambling stocks, Flutter is suffering from a sell-off triggered by tariffs on U.S. exchanges. On Monday, the stock price dropped by 8.36%. Since the beginning of the year, the decline has already reached 15%. Despite these losses, analysts remain optimistic.
Flutter’s Market Position and Growth Potential
Flutter holds a strong market position in the U.S., particularly through FanDuel, in which the company owns a 95% stake. FanDuel is the leader in online sports betting and iGaming in the U.S., with a 36% market share in active states. Besides the U.S., Flutter is also well-established in Australia, Europe, and the U.K.
Financial Stability as a Support
At the end of 2024, Flutter had $1.53 billion in liquid assets and reduced its debt from 3.1x to 2.2x EBITDA. For 2025, the company expects an operating cash flow of over $650 million. Additionally, Flutter plans extensive share buybacks of up to $1 billion in the current year.
Stock Valuation and Potential
According to Morningstar, the fair value of Flutter’s stock is $279, representing an upside potential of 22.6% compared to the current price. The company is currently valued at a 16x EBITDA multiple for 2025.
Our Assessment
Despite the recent stock price decline, Flutter remains a strong player in the global gambling market. Its solid financial position and market leadership in the U.S. support long-term growth. Investors with a long-term investment horizon may see the current weakness as a buying opportunity.
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