I’d love to read any analysis on this step. I understand these are roughly the facts:
a) 23% of Flutter’s revenue comes from UK. Will gradually reduce over time as US revenue grows far more rapidly.
b) New taxes likely to raise UK Govt between £900m and £3bn per annum in first year.
c) Share price fall (on Friday evening) reduced market cap by around £3.3bn |
first I've heard of it...hopefully an overreaction, they are a volatile share |
Total nightmare this evening. Shares down around £18 (10% from where they were) due to potential UK Govt tax on the sector. |
Looks like the stock is rallying to bump up against $260 [Flut:NYSE]
Edit: What an unexpected reversal from yesterday. Wow. Down 7.5% as of right now... |
I stand corrected on Playtech. I should have qualified as “not a meaningful competitor” to Flutter but I see they do have some competing business areas. The net debt error was the real clanger. |
DraftKings app has been down across the whole US for hours now. |
The tiddlers are backing off. 17 different firms have withdrawn from differing states in the past year as they cannot make it pay ; the latest being BetFred from another 2 leaving it with less than 10 |
Maryland record month in history 33m hold at 14pc, monthly totals are looking tremendous for first month of NFL and Prem football likewise |
Playtech IS a competitor |
Tempus section of today’s Times has a strong piece on Flutter although contains some notable errors (competitor surcharge/net debt went down by $317m not up/Playech is a gambling software company not a competitor). |
West Virginia 15pc hold & NC looking at 13pc+ for September |
& both FD & Hard Rock talking about Florida and a possible tie in |
Jackson speaking today in Vegas @ Global Gaming Expo |
Another monster weekend for the book, both sides. Fewest ever sellers today right now : They know |
Great news |
“Brazilian President Luiz Inacio Lula da Silva, whose government is trying to stop the rising trend of sports betting negatively affecting household finances, stated on Sunday that he will ban online betting if regulation fails to counter addiction among gamblers” |
I would expect an updated ( and increased) price target from Davy next week.It's reached $234,their PT from earlier in the year. |
One Hundred and Eighty |
I would infer that the scale of the buyback implies that a dividend payment is very unlikely. As you probably know, US firms (which Flutter effectively is now) tend to prefer Buybacks over paying dividends as a method of returning funds to shareholders. |
Does buyback rules out dividend? |
For the most part, the stock has achieved what everyone thought this year would look like.
The Wildcard, however, is the share buyback program.
This obviously has a direct impact on the price and can change price-targets within a moments notice. |
Thanks Vraetorian. Very helpful. With that in mind and noting the timescale of the target (post below), Analysts are (on average) are notably lukewarm about the stock. |
A price target represents an analyst's estimate with the timeline of generally 12 to 18 months.
Which is why it's important to post the date the estimated announcement was declared.
Analysts can update these estimates at any time and as often as they like when new data has been presented by the company they're covering.
For example:
Sep 26, 202416:20 UTC
(16:20 GMT) Flutter Entertainment Price Target Raised to $275.00/Share From $240.00 by Craig-Hallum
Sep 26, 202414:27 UTC
(14:27 GMT) Flutter Entertainment Price Target Raised to $275.00/Share From $263.00 by Barclays
Sep 26, 202414:11 UTC
(14:11 GMT) Flutter Entertainment Price Target Raised to $300.00/Share From $255.00 by Oppenheimer |
Quick question as it has always bothered me. What the hell does “target price” actually mean?? I would welcome any insight but please provide detail if you have it ie Flutter is incredibly likely to make $400 a share one day but without specific timing guidance the “target” is meaningless. |
Benchmark 255 -> 265
MoffettNathanson 245 -> 275
Oppenheimer 255 -> 300
Barclays 263 -> 275
JMP maintains 255$
Average target price now 256$ based on my brokers data from factset. |
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