On Friday, JPMorgan (NYSE:JPM) updated its outlook on Flutter Entertainment Plc (FLTR:LN) (NYSE: FLUT), increasing its price target to £277.00 from the previous £215.00 while maintaining an Overweight rating on the stock. The adjustment reflects a roughly 30% enhancement to the price target, now set for December 2026, suggesting an approximate 55% upside potential from the current share price.
The firm's analysis comes after a comprehensive review of Flutter's business strategy, particularly in light of its recent command performance at a corporate management event and the integration of newly acquired assets. The raised price target also takes into account a one-year forward-looking approach, as the analyst rolls the target forward to the end of 2026.
According to JPMorgan, Flutter Entertainment stands out within the Leisure sector with a robust growth trajectory, projecting revenue and earnings per share (EPS) to increase on average by 14% and 40%, respectively, for fiscal years 2025 to 2027. The company is recognized for its superior scale and product innovation, which are seen as key drivers for its continued success in the market.
The firm also addressed recent concerns regarding a potential uptick in UK Gaming tax rates, considering them to be exaggerated and largely speculative. Despite the inherent risks that come with new budgets and the possibility of tax hikes, the analyst suggests these fears are overblown.
JPMorgan's new price target implies a one-year forward enterprise value to EBITDA (EV/EBITDA) multiple of approximately 14 times, which aligns with Flutter's current one-year forward EBITDA multiple and its historical average, indicating a consistent valuation approach.
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