Flutter Entertainment flipped to ‘buy’ after share price drop

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Flutter Entertainment PLC (LSE:FLTR) shares are too cheap according to Peel Hunt’s upgrade, which today moves to ‘buy’ from ‘reduce’.


With a price target of 14,800p the stockbroker sees some 17% upside to the current market price of 12,615p.


The stockbroker reckons the Paddy Power parent is worth buying ‘on share price weakness’.


“The share price has performed poorly this year and now represents good value, we believe,” Peel Hunt analyst Ivor Jones said in a note.


Jones added: “we have updated our model for changes to Flutter’s reporting structure and the 19 July announcement of a debt refinancing. This provides the group with greater financial flexibility and an annualised saving on interest costs of GBP50m.”


Peel Hunt upgraded its forecasts for 2021 and 2022 both by 3%.


The stockbroker noted that Flutter averaged 7.7mln monthly players in the first quarter, up 36%, and its analysts expect the shift to more sustainable mass-market gambling will have continued through the rest of the first half.

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