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Flutter Entertainment stock soars to all-time high of $264.06

Published 11/13/2024, 10:34 PM
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Flutter Entertainment PLC shares have reached an all-time high, trading at $264.06, marking a significant milestone for the company. This peak reflects a robust performance over the past year, with the stock witnessing an impressive 56.93% increase in value. Investors have shown growing confidence in Flutter Entertainment's market position and future prospects, contributing to the stock's upward trajectory and its standout performance in the sector. The company's strategic initiatives and strong financial results have played a crucial role in driving the stock to this record level, signaling a positive outlook among shareholders and market analysts alike.

In other recent news, Flutter Entertainment reported strong Q3 results, with earnings per share of $0.43 and a revenue surge of 27% to $3.25 billion, exceeding analyst expectations. The company noted a remarkable 51% growth in its U.S. operations, contributing significantly to this performance. Following these results, Flutter Entertainment revised its full-year 2024 guidance, now anticipating group revenue of $14.25-$14.55 billion and adjusted EBITDA between $2.44-$2.62 billion.

In addition to its robust financial performance, Flutter Entertainment announced the initiation of a share repurchase program. The first tranche of this program involves the buyback of up to $350 million worth of its ordinary shares, part of a larger $5 billion program authorized by the Board. This buyback process will be managed by Goldman Sachs & Co LLC, with the repurchased shares expected to be cancelled as part of the company's capital reduction strategy.

Analysts at Needham have maintained a positive outlook on Flutter Entertainment, raising the stock's price target to $300 and reiterating a Buy rating. This decision followed a review of the company's performance, particularly its stronger-than-expected results in the U.S. The firm also adjusted its 2025 estimates upwards for both U.S. and international markets, reflecting confidence in Flutter Entertainment's growth trajectory.

InvestingPro Insights

Flutter Entertainment's recent stock performance aligns with several key metrics and insights from InvestingPro. The company's market capitalization stands at an impressive $46.85 billion, reflecting its significant presence in the gaming industry. InvestingPro data shows that Flutter has demonstrated strong revenue growth, with a 16.28% increase over the last twelve months and a notable 20.33% quarterly growth in Q2 2024. This robust top-line performance supports the stock's recent surge to all-time highs.

InvestingPro Tips highlight Flutter's financial strength and market momentum. The company is expected to grow its net income this year, and analysts predict profitability for the current fiscal year. These projections align with the stock's strong performance, as evidenced by its 67.34% return over the past year and its current trading near its 52-week high.

It's worth noting that Flutter operates with a moderate level of debt, which may provide financial flexibility for future growth initiatives. However, investors should be aware that the company is trading at high EBIT and EBITDA valuation multiples, suggesting a premium valuation.

For those seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for Flutter Entertainment, providing deeper insights into the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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