Berenberg raises target price on 'best-in-class operator' Flutter Entertainment

Analysts at Berenberg raised their target price on gaming outfit Flutter Entertainment from 13,800.0p to 16,000.0p on Tuesday as the group's US outperformance continues at pace.

Berenberg believes that Flutter Entertainment continues to be a "best-in-class operator", with a US business that remains "clearly" at the top of the market.

While it views Flutter's recent full-year results as a "mixed bag", with weakness in Australia offset by a stronger performance in

other regions, Berenberg stated that considering that the firm's US performance has "remained standout", with improving unit economics and continued market penetration, it thinks that the company remains on track to deliver an underlying profit in 2023.

"We value Flutter using a divisional DCF model and blend in a value for the US. Rolling forward our methodology, as well as adjusting for our new estimates, our price target increases to 16,000.0p/share – this is composed of 5,900.0p/share for the ex-US business and 10,100p/share for the US business," said the German bank.

Berenberg also reiterated its 'buy' rating on the stock.

Reporting by Iain Gilbert at Sharecast.com