Freedom Capital initiated coverage with a Hold rating and $105 price target.
- Freedom Capital’s $105 price target implies about 8% upside.
- The firm remains cautious due to operational issues that carried into fiscal 2026.
- The analyst also cited strong competition from prediction markets from established players like Kalshi.
Flutter Entertainment (FLUT) stock slipped premarket on Tuesday and received a cautious endorsement from Freedom Capital, which launched coverage of the gambling and gaming operator with a Hold rating and a $105 price target.
Analyst Cites Execution Concerns For FLUT
Freedom Capital’s price target implied a 8% upside to the stock’s last closing price.
Freedom Capital pointed to several factors that could limit near-term upside despite Flutter’s extensive international footprint. The firm said Flutter remains one of the world’s largest gambling operators, offering betting and gaming products in more than 100 countries.
However, the analyst highlighted operational challenges that emerged late in fiscal 2025 and continued to influence results and outlook expectations entering fiscal 2026.
Another factor weighing on the firm’s outlook involves prediction markets, an area that has attracted growing attention within the broader wagering industry. Freedom Capital noted that Flutter has yet to clearly communicate how it intends to compete or expand in that segment.
The analyst also noted that companies like Kalshi already have a strong lead in prediction markets. Because they entered the space earlier, Flutter may find it harder to attract users and build a significant market presence.
Flutter Entertainment stock edged 0.9% lower in Tuesday’s premarket.
FLUT’s Growth Expectations Repriced
Flutter Entertainment, the company behind FanDuel, Betfair, and Paddy Power, has endured a dramatic stock market setback in 2026. Shares have fallen by roughly 55% since the start of the year, reflecting investor concerns about slower growth, rising competitive pressures, and several strategic challenges affecting the business.
Weaker-than-expected operating trends, leadership changes, and mounting costs have led investors to reassess Flutter’s prospects. Investors began losing confidence after Flutter delivered betting-volume growth that fell short of market expectations.
FLUT Retail Traders View
On Stocktwits, retail sentiment around the stock remained in ‘neutral’ territory.
A user said, “Poly is in Deep trouble. They violated federal law by faking winning videos, and paid people to do it. This is a huge federal violation and misrepresentation. It’s highly regulated. Stock Brokerages are not even allowed to mention profits and trading accounts, and stuff like that due to compliance. It also opens the door for deeming their activities damaging to stock prices of especially $FLUT and $DKNG. They were both riding high until all the BS coming in from Poly and Kalshi.”
FLUT stock has declined by over 63% year-to-date.
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