Deutsche Bank (NYSE:DB)'s number crunchers have taken their time to assess the recent half-term report for Flutter Entertainment (LON:FLTR) before re-stating their ‘buy’ recommendation while ratcheting up the price target to £17.04 from £16.57.
Late morning the stock was changing hands for £14.22, barely changed on the day.
“Flutter delivered a strong set of interims, with a reassuring message for the full year,” the London arm of the German bank said in a brief note.
“The stand-out performer was Australia, where EBITDA was up 56%, despite being up against tough comparables.
“The US was also materially ahead of expectations, with momentum backed by a tripling of new customers over the past year.
“And while start-up losses will be materially above consensus in full-year 2021, management sees the US being EBITDA positive by 2023.”
Flutter on Tuesday reported pro-forma first-half revenue of £3.1bn, up 30% year-on-year, as the sporting calendar normalised. Customer volumes were similarly higher, with average monthly players up 40% over the six months compared to last year.
The Paddy Power and FanDuel parent reported a £77mln profit, including £276mln of amortisation charges against some acquired intangible assets.
Deutsche’s glowing report chimed with post-results analysts from both Shore Capital and Peel Hunt.
Those interested in taking a deeper dive into Flutter story and exploring the potential hidden value of its FanDuel operation in the US should read the post-results analysis provided by Bryce Elder in the Financial Times. Here’s a link to his exposition of the results, and the way forward for this £25bn gaming conglomerate.