Flutter shares soar after gambling group reports ‘no sign’ of slowdown
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Gambling group Flutter (GB:FLTR) saw its shares soar after positive results and an announcement that there was “no discernible sign of a consumer slowdown” affecting its revenues.
The company – which owns brands such as Sky Bets and FanDuel – was the biggest gainer among FTSE 100 companies, as its shares surged 12%.
Danni Hewson, a financial analyst at AJ Bell said, “Flutter took the top slot among the FTSE risers, with the shares jumping after the company said there were no signs of consumers betting less – something the market had been fearing given the cost of living crisis.”
The company said that the cost-of-living crisis was not denting punters’ appetites for gambling, and that a 4% decline in revenues was due to safer gambling measures instituted recently.
Is Flutter a good investment?
The measures included £10 limits on slot machine stakes and mandatory deposit limits for customers under 25.
Chief executive Peter Jackson said “We are confident that the safer gambling changes we have already made to date position us well for the future.”
Earlier this summer, advisors to Boris Johnson postponed a proposal to reform gambling laws for the fourth time, saying that a white paper could not be published until a new leader of the Conservative party was elected.
View from the City
According to TipRanks’ analyst rating consensus, Flutter stock has a Strong Buy rating, based on 11 Buy ratings, no Holds and no Sells.
The average price target is 13,829.09p, which is 28.8%% higher than the current price level. The stock has a high forecast of 15,600p and a low forecast of 11,700p.
Conclusion
Flutter’s results seem to reinforce the idea that people will still bet even in times of uncertainty, so analysts believe the stock is a good bet.
