Berenberg hikes target price on Flutter Entertainment
Analysts at Berenberg raised their target price on Flutter Entertainment from 20,300.0p to 23,200.0p on Friday, stating that the bookmaker's Q3 performance showed sustained share gains.
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Berenberg said Flutter had delivered Q3 results that were "significantly above expectations", with FY24 guidance much better than anticipated.
"We were expecting a beat at Q3, but the one delivered was well ahead of our expectations and broad-based across divisions," said Berenberg.
Furthermore, the German bank noted that the market had anticipated a downgrade to Flutter's US underlying earnings from sports results but highlighted that the actual downgrade was smaller, while ex-US guidance was upgraded.
Berenberg, which has a 'buy' rating on the stock, stated that on a headline price-to-earnings basis, Flutter trades on 30.2x for a "solid" 41.4% earnings per share compound annual growth rate.
Reporting by Iain Gilbert at Sharecast.com