Citi puts Flutter Entertainment shares on ‘positive catalyst watch’

Citi opened a 30-day "positive catalyst watch" on shares of Flutter Entertainment on Tuesday ahead of its results on 13 August.

"Our Q2 preview points to broad-based strength across the Flutter portfolio," the bank said.

"We forecast Q2 Revenue growth of +15% (Q1 +16%), with US revenue growth at +33% driven by a joint record net win margin. Ex-US, we expect bookmaker friendly results (football/soccer) to boost both UK & Ireland and International Q2 revenue growth (expect negligible results impact in Australia) and forecast broadly stable momentum otherwise."

Citi said it was 3% ahead of consensus on 2Q24 estimated revenue, with EBITDA even further ahead as it expects incremental revenue from strong win margins across large parts of its business (especially US and UK & Ireland) to dropthrough meaningfully to Flutter’s bottom line.

Citi rates the shares at ‘buy’ with a £200 price target.