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Flutter knocked to ‘sell’ as Citi predicts online betting and gaming will suffer from prolonged lockdown

The investment bank said they had based their cash burn forecasts on revenue falls of up to 65% for gambling operators

Flutter Entertainment PLC - Flutter knocked to ‘sell’ as Citi predicts online betting and gaming will suffer from prolonged lockdown

Flutter Entertainment PLC (LON:FLTR) has been downgraded to ‘sell’ from ‘neutral’ by analysts at Citi, who said that online betting and gaming revenues “could suffer” from prolonged lockdowns during the coronavirus pandemic.

In a note on Monday, the investment bank said they expected all gaming companies to have “sufficient liquidity” to withstand the current coronavirus downturn, however, they added that they had based their cash burn forecasts on revenue falls of up to 65% for gambling operators.

READ: Flutter flies higher as revenues tumble 'only 32%' since UK and Irish horseracing suspension

However, despite this, the bank upped its price target for Flutter to 7,200p from 5,508p, although this is a 20% discount to the company’s closing price last Friday.

In lunchtime trading, Flutter’s shares were 1.4% higher at 9,174p.

Quick facts: Flutter Entertainment PLC

Price: 13553.05 GBX

LSE:FLTR
Market: LSE
Market Cap: £212.58 m
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