Jefferies Highlights Upside Opportunities for Flutter Amid Easing Prediction Market Concerns
Flutter Entertainment PLC (LSE:FLTR, NYSE:FLUT) is at a potential inflection point as concerns over prediction markets cannibalizing online sports betting begin to ease. Jefferies analysts noted that the market had previously driven a 65% decline in Flutter's share price due to fears of disruption from prediction markets and de-rated its valuation significantly. The firm argues that evidence suggests limited impact on online sports betting handle growth, with no meaningful share loss observed in states where it is legal. Jefferies identified potential incremental opportunities through market-making activity, FanDuel Predicts, and regulatory leverage, estimating a $340 million annual EBITDA contribution from Kalshi parlays alone if Flutter captures 25% of the opportunity. The analysts also highlighted that prediction markets could support broader regulation efforts for online sports betting. Jefferies expects Flutter to deliver its first US EBITDA beat in over a year, which may improve investor confidence ahead of expected earnings growth later this year.
Topics: EBITDA Flutter Jefferies prediction markets sports betting