FanDuel is viewed as a primary feather accelerator for Flutter Entertainment (NYSE: FLUT) stock, which recently debuted on the New House of York Stock Exchange (NYSE).
That’s the opinion of JPMorgan psychoanalyst Estelle Weingrod who, in a new write up to clients, upgraded shares of the Dublin-based gaming fellowship to “overweight” with a cost butt of $272. That implies upside of near 22.5% from stream levels.
Weingrod noted FanDuel accounts for 40% of Flutter’s revenue and is 80% of the conclude for the rise of the parent company’s shares.
(FanDuel is) demonstrating leaps of come on and the resiliency of the business organization theoretical account … which should aim further upside potential for the shares,” wrote the analyst. “(We’re now) at present sense more and more sure-footed nigh the TAM chance crystallizing.
She added that FanDuel can buoy gather more market place part inward the US and that the operator’s opportunity go under inward iGaming isn’t full comprehended by investors. Flutter shares debuted on the NYSE on January 29. To date, it’s been a smarting make a motion by the company, as highlighted past a gather of 9.15% over the yesteryear month.
Flutter Stock Has Wide Moat Credentials
Weingold also observed that Flutter comes with a “strong moat,” which can safety against competitory threats.
“This continues to reenforce its positioning despite increased free-enterprise(a) intensity (especially inward the US) and ongoing regulatory headwinds,” she wrote.
In the US, FanDuel and rival DraftKings (NASDAQ: DKNG) essentially run as a duopoly inwards the online sports betting market – ace in which competitors experience proven unable inward grabbing important portion out from the two leaders. In the UK, Flutter is expanding its conduct over Ladbrokes operators Entain Plc (OTC: GMVHF). Over the past tense year, Flutter caudex has rallied spell shares of Entain tumbled.
Weingold added that the Flutter inventory story is underpinned by self-colored fundamentals, including firebrand recognition, geographical reach, and scale. Those factors position the manipulator inward a “favorable blot to bewitch growth opportunities across markets spell keeping it well-positioned to efficiently tackle regulatory headwinds,” according to the analyst.
Speaking of Branding…
The assertion that Flutter enjoys enviable make acknowledgment is accurate, particularly when accounting for the fact that FanDuel is ace of the most worthful gaming brands inwards the world. That’s 1 of the reasons the fellowship canful cement and expand its securities industry share billet inwards the US.
FanDuel’s superordinate product/tech stack continues to get enhanced have rates through leading espousal of high-margin products (parlays, live [wagering]) and improve generousness effectiveness, leading to improved booking and monetisation of its client base,” concluded Weingold.
Earlier this week, it was announced that FanDuel will become the lone operator of roving sports wagering inwards Washington, DC. That transition is expected to read set inward the spring. Flutter owns 95% of FanDuel with the other 5% controlled past Boyd Gaming (NYSE: BYD).