Flutter shares have been on a roll for the past year climbing by a third and now valuing the bookmaking group at a chunky £24bn.
A growing opportunity in the US as more states liberalise gambling and what that could mean for Flutter’s FanDuel sports betting business has been behind much of those gains.
Citigroup today said fourth-quarter US state data remains very bullish for Flutter though in valuation terms “We believe expectations are already there”, it added.
Citi expects US net gaming revenue of £2.5bn in 2022, towards the bottom of the company’s guidance, though other brokers are more upbeat.
Flutter has already said it expects its US division to be profitable in America this year (2023), earlier than peers, and consensus estimates for the business continue to creep higher notes Jefferies
FanDuel can also benefit from the promotional intensity declining in more mature US states, it adds, while there are positive signs in the newly legalised states of Maryland and Ohio.
In an update in November, Flutter raised guidance for US revenues to between £2.45bn -2.65bn with an underlying loss of between £235-285mln, while the rest of the business is expected to turn an underlying profit of between £1.29-1.39bn.
Jefferies rates the stock a 'buy' up to 15,000p.