{"id":194290,"date":"2021-12-06T12:38:24","date_gmt":"2021-12-06T20:38:24","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=194290"},"modified":"2021-12-06T18:17:11","modified_gmt":"2021-12-07T02:17:11","slug":"flutter-stock-could-be-undervalued-says-an-analyst","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/flutter-stock-could-be-undervalued-says-an-analyst\/","title":{"rendered":"Flutter Entertainment Stock Undervalued After Gaming Stocks Stumble"},"content":{"rendered":"<p>There&#8217;s been an acute weakness in gaming equities in recent weeks, including those with significant sports wagering exposure. As a result, names such as <span style=\"color: #000000;\">Flutter Entertainment (OTC:PDYPY)<\/span> are undervalued in the eyes of some market observers.<\/p>\n<figure id=\"attachment_194297\" aria-describedby=\"caption-attachment-194297\" data-style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-194297 size-full\" src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/FD3.jpg\" alt=\"Flutter stock\" width=\"1200\" height=\"900\" srcset=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/FD3.jpg 1200w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/FD3-142x107.jpg 142w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/FD3-1024x768.jpg 1024w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/FD3-768x576.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption  id=\"caption-attachment-194297\"class=\"text-description\">Bettors take in the action at a FanDuel sportsbook. An analyst says parent company Flutter is undervalued. (Image: <em>Forbes<\/em>)<\/figcaption><\/figure>\n<p>In a note to clients today, Peel Hunt analyst Ivor Jones reiterates a \u201cbuy\u201d rating on the FanDuel parent while trimming his price target to $192 from $225. That new forecast implies a valuation of 15x earnings rather than 20x. Jones adds Flutter stock is now undervalued.<\/p>\n<blockquote class=\"main-blockquote\"><p><strong>Flutter has remarkably successful businesses in the US, and we expect them to continue to thrive,\u201d<\/strong> he said. <strong>\u201cValuations in the US are changing and tough questions are being asked about when profit will be achieved and what multiples to apply.\u201d<\/strong><\/p><\/blockquote>\n<p>Like its peers in the US, FanDuel isn\u2019t yet profitable here on a broader basis. It\u2019s spending large amounts of cash to acquire customers, but the operator is quickly able to wring dividends from clients. Since the 2018 <a href=\"https:\/\/www.casino.org\/news\/ohio-officials-weigh-in-on-1b-net-revenue-record-at-racinos\">Supreme Court ruling<\/a> on the Professional and Amateur Sports Protection Act (PASPA), FanDuel\u2019s cost per acquisition (CPA) is $291. But its average return on investment in the first year after acquiring a customer is 1.2x, according to Flutter.<\/p>\n<p>Flutter owns 95 percent of FanDuel, the largest online sports betting operator in the US.<\/p>\n<h2>Flutter Stock Has Perks<\/h2>\n<p>As is the case with rivals such as DraftKings, FanDuel currently isn&#8217;t profitable and it spends considerable sums of cash on marketing and customer acquisition.<\/p>\n<div class=\"callout\">\n<p>In the first half of the year, FanDuel spent $404 million on marketing and sales to generate $952 million in revenue. That\u2019s <a href=\"https:\/\/www.casino.org\/news\/draftkings-revenue-guidance-again-raised-following-strong-q2\/\">while rival DraftKings<\/a> spent $399 million to drum up sales of $610 million. Flutter projects FanDuel will be positive on the basis of earnings before interest, taxes, depreciation and amortization (EBITDA) sometime in 2023.<\/p>\n<\/div>\n<p>However, FanDuel doesn&#8217;t represent the entirety of the Flutter empire, and that&#8217;s a positive for investors relative to US-only operators. O<span style=\"color: #000000;\">ne of the primary sources of allure with UK-based betting firms, such as Flutter, isn\u2019t their consumer-facing businesses, but rather back-end technology.<\/span><\/p>\n<p><span style=\"color: #000000;\">Flutter, which also owns Paddy Power and PokerStars, controls some of the most recognizable brands in mature betting markets such as Australia and Europe. That&#8217;s while many of its US competitors have no international exposure.<\/span><\/p>\n<h2><span style=\"color: #000000;\">2022 Catalysts for Flutter<\/span><\/h2>\n<p><span style=\"color: #000000;\">Looking toward 2022, the major potential catalyst on the horizon for Flutter stock is the expected spin-off of FanDuel.<\/span><\/p>\n<div class=\"callout\">\n<p><span style=\"color: #000000;\">That process was delayed this year due to an executive departure and <a href=\"https:\/\/www.casino.org\/news\/fanduel-spinoff-said-to-be-delayed-until-next-year\/\">some legal wranglings with<\/a> Fox Corp. (NASDAQ:FOXA). With sports wagering equities encountering weakness in the home stretch of 2021, Flutter may be validated in delaying the FanDuel separation.<\/span><\/p>\n<\/div>\n<p><span style=\"color: #000000;\">Another obvious catalyst for Flutter would be a takeover &#8212; something that&#8217;s been previously speculated. But that&#8217;s just a rumor at this point, and the company doesn&#8217;t need to put itself up for sale.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There&#8217;s been an acute weakness in gaming equities in recent weeks, including those with significant sports wagering exposure. As a result, names such as Flutter Entertainment (OTC:PDYPY) are undervalued in the eyes of some market observers. In a note to clients today, Peel Hunt analyst Ivor Jones reiterates a \u201cbuy\u201d rating on the FanDuel parent [&hellip;]<\/p>\n","protected":false},"author":46,"featured_media":194297,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,1074],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Flutter Stock Could Be Undervalued, Says An Analyst<\/title>\n<meta name=\"description\" content=\"Flutter stock appears inexpensive and could have ample 2022 catalysts to consider.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/flutter-stock-could-be-undervalued-says-an-analyst\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Flutter Stock Could Be Undervalued, Says An Analyst\" \/>\n<meta property=\"og:description\" content=\"Flutter stock appears inexpensive and could have ample 2022 catalysts to consider.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/flutter-stock-could-be-undervalued-says-an-analyst\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2021-12-06T20:38:24+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-12-07T02:17:11+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/FD3.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"900\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/flutter-stock-could-be-undervalued-says-an-analyst\/\",\"url\":\"https:\/\/www.casino.org\/news\/flutter-stock-could-be-undervalued-says-an-analyst\/\",\"name\":\"Flutter Stock Could Be Undervalued, Says An Analyst\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/flutter-stock-could-be-undervalued-says-an-analyst\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/flutter-stock-could-be-undervalued-says-an-analyst\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/FD3.jpg\",\"datePublished\":\"2021-12-06T20:38:24+00:00\",\"dateModified\":\"2021-12-07T02:17:11+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Flutter stock appears inexpensive and could have ample 2022 catalysts to consider.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/flutter-stock-could-be-undervalued-says-an-analyst\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/flutter-stock-could-be-undervalued-says-an-analyst\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/flutter-stock-could-be-undervalued-says-an-analyst\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/FD3.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/FD3.jpg\",\"width\":1200,\"height\":900,\"caption\":\"FanDuel parent Flutter could be ready to rally. An analyst says the stock is undervalued. (Image: Forbes)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/flutter-stock-could-be-undervalued-says-an-analyst\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Flutter Entertainment Stock Undervalued After Gaming Stocks Stumble\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Flutter Stock Could Be Undervalued, Says An Analyst","description":"Flutter stock appears inexpensive and could have ample 2022 catalysts to consider.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/flutter-stock-could-be-undervalued-says-an-analyst\/","og_locale":"en_US","og_type":"article","og_title":"Flutter Stock Could Be Undervalued, Says An Analyst","og_description":"Flutter stock appears inexpensive and could have ample 2022 catalysts to consider.","og_url":"https:\/\/www.casino.org\/news\/flutter-stock-could-be-undervalued-says-an-analyst\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2021-12-06T20:38:24+00:00","article_modified_time":"2021-12-07T02:17:11+00:00","og_image":[{"width":1200,"height":900,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/FD3.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/flutter-stock-could-be-undervalued-says-an-analyst\/","url":"https:\/\/www.casino.org\/news\/flutter-stock-could-be-undervalued-says-an-analyst\/","name":"Flutter Stock Could Be Undervalued, Says An Analyst","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/flutter-stock-could-be-undervalued-says-an-analyst\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/flutter-stock-could-be-undervalued-says-an-analyst\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/FD3.jpg","datePublished":"2021-12-06T20:38:24+00:00","dateModified":"2021-12-07T02:17:11+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"Flutter stock appears inexpensive and could have ample 2022 catalysts to consider.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/flutter-stock-could-be-undervalued-says-an-analyst\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/flutter-stock-could-be-undervalued-says-an-analyst\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/flutter-stock-could-be-undervalued-says-an-analyst\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/FD3.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/FD3.jpg","width":1200,"height":900,"caption":"FanDuel parent Flutter could be ready to rally. An analyst says the stock is undervalued. (Image: Forbes)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/flutter-stock-could-be-undervalued-says-an-analyst\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"Flutter Entertainment Stock Undervalued After Gaming Stocks Stumble"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. 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