This week’s sell-off in Flutter Entertainment PLC (LSE:FLTR) presents an opportunity for investors to pick up a premium share at a discount price, that’s according to analysts at Berenberg.
Paddy Power parent Flutter shares pulled back after Tuesday’s third-quarter results showed profits dented by unfavourable sports results books and suspension in the Netherlands.
Berenberg opportunistically upgraded Flutter to ‘buy’ from ‘hold’, and set a price target of 15,000p versus the current price of 12,770p, which is described by analyst Jack Cummings as an attractive entry point.
“Flutter has always ticked all our key boxes: geographic diversification, scale and a strong presence in the lucrative US market,” the analyst said in a note.
“This has historically been tempered by valuation premium and concerns about an ongoing litigation case in Kentucky which has now been resolved.
“While our price target falls to 15,000p from 15,800p as a result of changes in the Netherlands and the implementation of proactive responsible gambling policies in the UK in advance of regulatory changes, we believe the weakness in the shares following the Q3 results is unjustified and overdone.”
