Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • Analysts at Berenberg, Jefferies, and Redburn rate Flutter Entertainment a BUY, with a potential upside of up to 34.01%.

  • The company secured full ownership of FanDuel after acquiring Boyd Gaming’s 5% stake for USD 1.755 billion.

  • Flutter’s current target price is AUD 510.99, equivalent to a 15.07% increase from current levels.

Flutter Entertainment Plc (LSE:FLTR, NYSE:FLUT) has been given a consistent BUY rating by major analysts including Berenberg, Jefferies, and Redburn, particularly following its acquisition of full ownership in FanDuel. Based on current analyst targets, the stock offers an upside potential of up to 34.01%, with price targets ranging from AUD 506.87 to AUD 595.11.

Berenberg analyst Jack Cummings has reiterated a BUY rating with a price target of AUD 506.87, representing a 14.14% upside. Jefferies’ James Wheatcroft also maintained a BUY rating with a target of AUD 496.61. Andrew Tam from Rothschild & Co Redburn projects a 25.23% upside, setting the price at AUD 556.12.

Flutter’s average target price of AUD 510.99 stands notably above the current share price, and this bullish outlook is likely to be supported by the company’s latest strategic moves.

100% Ownership of FanDuel Marks Strategic Milestone

In a pivotal transaction, Flutter Entertainment announced the acquisition of Boyd Gaming Corporation’s remaining 5% stake in FanDuel, a move that brings Flutter's ownership of the U.S.-based sports betting leader to 100%. The USD 1.755 billion deal, announced on July 10, 2025, also includes revisions to existing commercial terms with Boyd, leading to reduced market access costs across key states.

FanDuel currently holds a dominant 43% market share in U.S. online sports betting and 27% in iGaming, making it a critical asset in Flutter’s global portfolio. The revised agreement with Boyd is expected to yield annual cost savings of around USD 65 million, beginning July 1, 2025.

CEO Peter Jackson described the acquisition of FanDuel as a "transformational event" for Flutter. “We are really pleased to drive future value for our shareholders by increasing our ownership of FanDuel to 100%,” he said, highlighting Boyd as a "fantastic partner."

Bridge Facility to Fund Acquisition

To fund the transaction, Flutter has secured a USD 1.75 billion bridge credit facility, maturing 12 months from its first use, with optional extensions. The facility bears interest at a rate tied to Term SOFR, with applicable margin starting at 1.25%. The funds will be used not only to pay Boyd but also to support working capital and general corporate purposes.

Flutter’s management confirmed that while leverage is expected to increase temporarily, it remains committed to its medium-term leverage target of 2.0x to 2.5x.

Flutter reported $14.05 billion in global revenue for FY24, up 19% year-over-year, and $3.67 billion for Q1 FY25. With market-leading brands like FanDuel, PokerStars, Paddy Power, and Sky Betting & Gaming under its belt, the company continues to reinforce its leadership in global online gaming.

Flutter’s success is powered by what it calls the “Flutter Edge” — group-wide advantages such as shared data, technology infrastructure, and customer acquisition capabilities.