Flutter Entertainment PLC

NYSE:FLUTUnited States

1110 GMT - Flutter Entertainment's investment case continues to improve as FanDuel has become an attractive business, Davy Research analyst Paul Ruddy writes in a note. The size of the U.S. revenue and customer base, the continued growth and operating leverage are leading to a group expected growth rate of 12%, Ruddy says. Despite an increase in regulatory and tax news in the U.S., including the rise in Illinois tax rate from 15% to a progressive scale up to 40%, FanDuel is well placed from a safer gambling perspective, the analyst adds. Shares are down 2.2% at GBP144.80. (najat.kantouar@wsj.com)

1021 GMT - Flutter Entertainment is a leader in multiple markets but its U.S. business is expected to be hit by regulations, Peel Hunt analysts Ivor Jones and Douglas Jack write in a research note. The U.K. brokerage lowers the U.S. business valuation by $2 billion to $18.4 billion, reflecting the deterioration in the trajectory of gambling duty in the U.S. Also, the gambling and betting group's Australian business segment market growth and gross margin are expected to be lower than expected postpandemic, the analysts add. Peel Hunt downgrades its recommendation to hold from buy, and its target price to GBP150 from GBP160. Shares are down 2.8% at GBP146.40. (najat.kantouar@wsj.com)