Flutter Entertainment PLC (LSE:FLTR) nabbed a 'buy' rating from Peel Hunt after the betting group’s share price backtracked “from the initial excitement about a US domestic listing”.
Despite lifting in the first two weeks of December, Flutter’s shares remain 14% lower since the middle of the year, but Peel Hunt expects increased demand when the company lists in New York on January 29, 2024,
Peel Hunt also reckons the trading update due in January could be a “platform for upgrades” despite November guidance lowering expectations due to adverse sporting results and foreign exchange headwinds.
Peel Hunt said: “Flutter’s FanDuel is a familiar brand to many US domestic investors. The shares will offer them exposure to a fast-growing local market leader with a cash cow international business… We expect increased demand, and solid trading, to drive up the share price.”
Peel Hunt upgraded Flutter from 'hold' to 'buy' with a target 16,000p target price against a 13,675p publication price.