Flutter Entertainment (FLUT) PT Lowered to $100 at Susquehanna

Susquehanna analyst Joseph Stauff lowered the price target on Flutter Entertainment (NYSE: FLUT) to $100.00 (from $115.00) while maintaining a Positive rating.

The analyst comments "Within a challenging market backdrop where consumer discretionary ETFs are down ~7% YTD, FLUT's (65%) YTD reflects: 1) an ~3x+ higher implied-vol of 59 (vs. XLY's 20), which equates to a 3.0 market-implied beta for FLUT vs. XLY; 2) software multiples in transition; 3) industry-specific headwinds from continued hyper-competition (new competitive entrant like PMs = higher spend to defend = fear of lower TAM and deferred profitability); and 4) FanDuel's company-specific challenges in OSB/PMs. Without new state launches to offset (only one new per year in each of '25/'26 vs. roughly four per year previously and zero iCasino since 2022) and higher taxes in some legalized states (IL/OH/MD/NJ/LA), the stocks have been engulfed by headwinds, and the unfavorable hold/higher spend in September has created investor dog-piling and FLUT has seen disproportionate impact given FD's OSB issues. While we think 3Q profitability will be lower (we think already discounted), we think the stock remains most sensitive to its FD recovery (it's making progress). Similar to DKNG, we think a strong KPI showing will drive the 3Q print under the theory it has stabilized its OSB offering"

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