BTIG Reiterates Buy Rating on Flutter Entertainment (FLUT)

BTIG analyst Clark Lampen reiterated a Buy rating and $249.00 price target on Flutter Entertainment (NYSE: FLUT).

The analyst comments "Yesterday morning, Flutter announced the acquisition of Snaitech S.p.A. -- an Italian omnichannel gaming operator -- for €2.3B (~$2.53B). The deal is expected to close in 2Q25 and against €256M of '23A EBITDA the headline purchase multiple is ~9.0x. When we include the PV of expected cost synergies (€70M; fully realized in Y3), the multiple drops to ~7.5x, and should dip further as revenue synergies are realized. While unquantified, we see potential for that second bucket of synergies to be material, based on the current delta in product quality/suite between Sisal and Snai. In a best-case scenario with continued double digit online market growth and share capture (helped by regulation), we see potential for a ~MSD or lower effective purchase multiple on Snai vs. out year numbers ('27/28). One level up, the PF FLUT Italy operation also has room to ~2x over the next 4-5 years, based on steady market growth, ongoing mix shifts, and a very high likelihood that Flutter + closest comp. Lottomatica (LTMC-MIL; Not Rated) capture share as licensing costs force smaller operators out of the market (BTIGe ~75%+ share captured between the two). Considering the price paid for Snai in context of those opportunities, we're very constructive on the deal and hope to see Flutter allocate additional capital toward the Italian market. As a derivative, leverage will tick higher in '25, and both Snai + Betnacional in tandem are likely to moderate the size of short-term shareholder returns (BTIGe ~$3.5-4B in BS capacity; these deals tap about $2.9B of that total). That's a fine trade, in our view, as Brazil requires some urgency ahead of an early '25 national betting launch, and bigger picture Italy/Brazil are two of the most important global growth markets alongside the US (+ eventually Japan)."

For an analyst ratings summary and ratings history on Flutter Entertainment click here. For more ratings news on Flutter Entertainment click here.

Shares of Flutter Entertainment closed at $230.55 yesterday.

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