Published on: April 16, 2026, 11:51 AM.
Updated on: April 16, 2026, 11:51 AM.
- Citi Research assigns a “sell” rating to Flutter stock
- Analysts significantly lowered the price target for the gaming company
- Analyst suggests FanDuel Predicts holds minimal value
Flutter Entertainment (NYSE: FLUT) shares declined on Thursday after Citi Research analyst Monique Pollard downgraded the stock from “buy” to “sell.”
During midday trading, shares of the owner of FanDuel fell 3.10%, contributing to a staggering 52.10% drop in the consumer discretionary stock’s value over the past year. Pollard, now the only analyst rating Flutter as “sell,” has drastically reduced her price target for the stock from $214 to approximately $92. She attributes this to potential declines in earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first half of 2026 and the possibility of Flutter revising its 2026 guidance downwards.
“We maintain a sell rating on Flutter,” Pollard states. “While its leading position in the US remains appealing, new market entrants and uncertainties in profit growth overshadow this aspect.”
Pollard has cut her EBITDA estimate for the first quarter by 10% and reduced her forecast for the second quarter by 37%. Among the 25 analysts covering the stock, 20 still give it “buy” or “strong buy” ratings.
Challenges with Prediction Markets for Flutter
Pollard has also placed Flutter under a 30-day “negative catalyst watch,” in part due to challenges posed by prediction markets.
Yes/no exchange platforms are increasingly becoming a complex issue for sportsbook operators, including Flutter. On one hand, sports betting volume on platforms like Kalshi is rising, suggesting some bettors are shifting to these venues. On the other hand, competitors like DraftKings and FanDuel are developing their own solutions. Flutter recently introduced FanDuel Predicts.
However, these strategies can be costly. Flutter could potentially invest up to $300 million this year in ramping up FanDuel Predicts, yet these expenditures may not yield immediate benefits. Pollard argues that the value of FanDuel Predicts is limited due to existing regulatory challenges surrounding prediction markets.
In related developments, FanDuel has submitted a proposal to the National Futures Association (NFA) to establish a new futures commission merchant (FCM) to offer event contracts, separate from its collaboration with CME Group.
Analyst Predicts Decline in Flutter’s Buyback Activity
In 2024, Flutter announced a substantial $5 billion share repurchase initiative. Since then, the parent of Paddy Power has aggressively bought back its shares; however, Pollard forecasts a reduction in this buyback pace in 2023 and 2027 “to ensure that leverage aligns with management’s medium-term guidance of 2-2.5x by FY27.”
This outlook may disappoint Flutter investors, as a faltering stock price would ideally be the perfect opportunity for the company to repurchase shares.
The Citi analyst has revised her 2026 buyback forecast down to $250 million from $600 million, while also halving her 2027 estimate from $1.5 billion to $750 million.