Flutter Entertainment offers sportsbooks and exchange sports betting products, daily fantasy sports products, and pari-mutuel betting products. It also offers fixed odds games betting products; online games and casinos; peer-to-peer games, including online bingo and poker; and business-to-business services. The company provides sports betting and gaming services through websites under the Paddy Power, Betfair, Sportsbet, TVG, FanDuel and Adjarabet brand names.
Back in December, the company drew one step closer to having complete ownership of fantasy sports and sports betting giant FanDuel after the sportsbook announced it was acquiring an additional 37% stake in the business, bringing its ownership position to 95%. Boyd Gaming owns the remaining 5% interest. Flutter is buying the position from FanDuel owner Fastball Holdings and will pay $2.1 billion in cash plus about 11.7 million in new Flutter stock. The acquisition will lift its ownership stake from 57.8%.
The $260 Jefferies price target accompanies a Buy rating. No consensus target was available. The over-the-counter shares closed on Friday at $229.33 apiece.
Penn National Gaming
This is an analysts’ favorite for online gaming and shares have backed up nicely after a massive run earlier this year. Penn National Gaming Inc. (NASDAQ: PENN) owns and manages gaming and racing properties, and it operates video gaming terminals with a focus on slot machine entertainment. It also offers live sports betting at its properties in Indiana, Iowa, Mississippi, Nevada, Pennsylvania and West Virginia, and it operates an online casino under the name of iCasino in Pennsylvania.
Last year, Penn National bought a 36% stake in Barstool Sports valued at $450 million, along with options to increase its stake to 50% in the future. Barstool is a sports media empire that claims 66 million monthly active users, roughly 100 million social media followers and two of the top 30 podcasts in the country.
With a huge growth potential and a big drop in the share price, this is an incredible play for aggressive growth investors.
Goldman Sachs has a Buy rating and a massive $153 price handle on Penn National Gaming stock. That compares with a $108.85 consensus target and Friday’s closing share price of $106.58.
The massive potential for the total addressable market is more than enough reason for investors with a solid risk appetite to add any or all of these stocks to portfolios. They have all had big runs over the past six months but have all backed up nicely and are offering the best entry points since late last year.