Flutter Entertainment (FLUT) PT Lowered to $220 at Canaccord

Canaccord analyst Jason Tichen lowered the price target on Flutter Entertainment (NYSE: FLUT) to $220.00 (from $270.00) while maintaining a Buy rating.

The analyst commented: "Flutter reported disappointing Q4 results, with revenue and profitability for both the US & International segments coming in below expectations. Recent challenges for FanDuel’s OSB platform dominated much of the call, with lower engagement driven by (1) less compelling NFL matchups later in the season & in the playoffs, and (2) the prolonged stretch of sportsbook-friendly NFL outcomes in late Q4 and early 2026. Management cited a greater impact to FanDuel from this recycling impact relative to peers due to its structural hold advantage, and this was compounded by poorly timed promotional generosity. The company conducted a comprehensive analysis of potential cannibalization from prediction markets and has seen no meaningful impact (LSD impact to handle), with the recent launch of FanDuel Predicts immediately expanding FanDuel’s US TAM and potentially accelerating OSB legalization. The FY26 INT outlook was in line with consensus while the US guide was well below already lowered expectations, which we see as the likely culprit for this latest leg down in shares of FLUT. The company took a conservative approach to near-term OSB trends, although a new loyalty program should contribute to sequential improvements throughout the year, and Flutter now expects its Predicts investment at the upper end of the previously indicated $200-300M range. Shares of FLUT are now down more than 60% over the past six months, reflecting a series of downward estimate revisions and heightened uncertainty for the US sports betting industry. However, we think all of this negativity (and then some) is priced in at this point, with the current valuation likely underappreciating Flutter’s ability to navigate a challenging operating environment and come out stronger on the other side given its extensive track record of doing so around the world."

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