Flutter: Macquarie raises PT to $340 from $320, maintains Outperform rating

Flutter: Macquarie raises PT to $340 from $320, maintains Outperform rating

Flutter Entertainment (FLUT) received a positive update from Macquarie Research, which raised its price target to $340 from $320, while maintaining an "Outperform" rating. The upgrade reflects the investment bank's bullish outlook on the company's financial performance and growth prospects [1].

In the second quarter of 2025, Flutter Entertainment reported strong earnings, with earnings per share (EPS) of $2.95, surpassing the forecast of $2.11 by 39.81%. Revenue also exceeded expectations at $4.19 billion compared to the anticipated $4.08 billion. The company's stock price, however, fell 3.92% in premarket trading to $294.08, despite the robust financial results [1].

Macquarie's positive assessment is supported by Flutter's impressive financial metrics. The company's five-year revenue compound annual growth rate (CAGR) stands at 38%, and its financial health score is rated as "GOOD" by InvestingPro. Additionally, Flutter plans to return up to $5 billion to shareholders over the next 3-4 years, reflecting confidence in its long-term growth strategy [1].

Flutter's U.S. segment, in particular, showed remarkable growth, with a 17% increase in revenue, bolstered by a 42% rise in iGaming. The company also expanded its market leadership in the U.S. Sportsbook and iGaming sectors. In international markets, Flutter completed the SNAI and NSX transactions, creating a leadership position in Italy and establishing a scale position in Brazil [1].

Despite the positive earnings report, Flutter's stock price fell 3.92% in premarket trading, closing at $294.08. This decline may reflect broader market trends or investor concerns about future growth potential. However, the stock has delivered a remarkable 59.89% return over the past year, and analysts remain highly bullish, with a recommendation rating of 1.46 [1].

Flutter Entertainment's strong performance and growth prospects have been recognized by Macquarie, which has raised its price target to $340. The investment bank's positive assessment is supported by the company's impressive financial metrics and growth prospects.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-flutter-entertainment-q2-2025-earnings-beat-expectations-93CH-4179604