Wedbush has initiated coverage on Flutter Entertainment (NYSE: FLUT), assigning the online gaming giant an “Outperform” rating alongside a price objective of $138.00.
The firm described Flutter Entertainment as the world’s largest online sports betting and internet gaming operator, with exposure to the most attractive markets globally.
Wedbush highlighted that Flutter’s leading position is anchored by FanDuel, which remains one of the most recognized brands in the competitive US sports betting landscape.
The initiation comes after a significant period of stock weakness, with FLUT shares having declined approximately 50% over the previous six months.
Wedbush attributed the sharp decline to a US growth scare stemming from prediction markets and share losses to competing sportsbooks cutting into Flutter’s domestic momentum.
Despite the selloff, the firm argued that Flutter’s current valuation levels remain overweight bearish outcomes, suggesting the market may be mispricing the stock’s true potential.
Wedbush also noted that current valuation levels demonstrate a large disconnect from consensus estimates, pointing to what the firm sees as a compelling entry point for investors.
The firm added that the stock does not adequately consider the upside opportunity from the company’s own prediction market offering, which could serve as a meaningful growth catalyst.
Wedbush further pointed to the probability of a rebound in H2 in Flutter’s relative US performance as another factor that the market appears to be discounting at present levels.
“At the present levels, the execution on just one of such points can result in share appreciation over the upcoming months,” Wedbush stated in its initiation note.
Flutter Entertainment operates across sports betting and gaming markets worldwide, with its US business continuing to attract significant analyst attention given the competitive dynamics at play.
The Wedbush initiation signals growing confidence among some analysts that the worst of FLUT’s near-term headwinds may already be priced into the shares.
