Published on: December 11, 2024, 04:14h.
Last updated on: December 11, 2024, 04:14h.
Flutter Entertainment (NYSE: FLUT) saw its stock rise by 1% today following an analyst’s projection that the stock could reach $600 in the next four years, more than doubling its current value of $277.47.
Analyst Chad Beynon from Macquarie initiated coverage on Flutter Entertainment with an “outperform” rating and a $340 price target, indicating a 22.8% upside potential. Beynon highlighted Flutter’s ability to meet the software rule of 40, positioning it as a gaming stock with significant growth prospects.
Based on Flutter’s assets and market potential, Beynon forecasts a significant uptick in revenue and earnings over the next six years, with a potential share price of $600 within four years.
Flutter’s alignment with the rule of 40 in the software industry signifies its strong revenue growth and profit margin, distinguishing it from other gaming stocks.
Flutter Stock Benefits from Wide Moat Attributes
Beynon also pointed out that Flutter possesses a wide moat, leveraging advantages like brand recognition and intellectual property that set it apart from competitors.
“FLUT benefits from a robust moat with unique IP and loyal customer base, creating barriers to entry for competitors. The potential for growth through mergers, acquisitions, and partnerships further enhance its value,” noted the analyst.
Flutter’s strong market position is evident in its valuable brand recognition and technological leadership, particularly in same-game parlays.
Additionally, Flutter’s strategic acquisitions in various markets, including Australia and Europe, have strengthened its position and contributed to its steady growth.
“Since 2019, Flutter has experienced significant growth due to strategic acquisitions and market leadership in key regions. The company’s M&A strategy has created substantial value for investors,” Beynon concluded.