Flutter Entertainment PLC (LSE:FLTR), the betting operator, could be moving its primary listing to the US by mid-2024, analysts at Jefferies reckon, with the group’s US sportsbook FanDuel already profitable and dominating in terms of market share.
Plans to launch a secondary listing Stateside are already underway and according to the US bank, it could happen by the fourth quarter of 2023 or in the first quarter of 2024, with a primary listing targeted for the middle of next year.
Shares in Flutter, which owns UK brands like Sky Bet and Paddy Power, are up over 20% year-to-date, and Jefferies still believes there is further room to grow, calling the stock a “top pick buy”.
Analysts at the US investment group are confident that underlying earnings and valuation multiples can grow as a result of an expansion to the US market and the looming switch to an American listing.
“Investor interest is moving on from 'if the US will be profitable' ('firmly on track'), to the trajectory and sizing of profitability. We see £2.2bn EBITDA from the US alone by 2030, driving a 20% group EBITDA CAGR to 2030,” Jefferies added.
In preparation for the group's third-quarter earnings, due 9 November, Jefferies is expecting upbeat commentary, which will include strong US market data as well as a nod to resilient consumer activity in the rest of its markets.
A jump in market share for FanDuel, which swung from a loss for the first time this year, is predicted to help boost profitability, albeit for 2024 and 2025 rather than this financial year.
Jefferies targets a 19,500p share price for Flutter, with the stock opening around 13,800p on Wednesday.