Flutter Entertainment (NYSE: FLUT) saw its stock climb by 1% today, closing at $277.47, following an optimistic forecast by Macquarie analyst Chad Beynon. According to Beynon, the parent company of FanDuel has the potential to more than double its current share price, reaching $600 within four years.

In his report, Beynon initiated coverage of Flutter with an “outperform” rating and a price target of $340, indicating a 22.8% upside from its current levels. He highlighted that despite Flutter meeting the “elusive” Rule of 40—a benchmark typically reserved for software stocks—investors still perceive it as a gaming equity rather than a software-driven business.

He further outlined a growth trajectory for Flutter, forecasting compound annual growth rates (CAGR) of 12% for revenue and 21% for earnings before interest, taxes, depreciation, and amortization (EBITDA) from 2024 to 2030. This growth, supported by a serviceable addressable market (SAM) projected to expand at a 10% CAGR to $210 billion by 2030, could drive the stock to $600 within the next four years.

Flutter’s Competitive Advantages and Growth Potential

Beynon emphasized that Flutter qualifies as a “wide moat” stock, benefiting from competitive strengths like robust intellectual property (IP), brand loyalty, and high customer switching costs that create significant barriers for competitors.

“FLUT benefits from a deep moat, including unique IP, strong brand recognition, and substantial switching costs. Additionally, the company has upside potential through strategic mergers, acquisitions, and partnerships that are not fully reflected in our forecasts,” noted Beynon.

As a leader in online sports betting in the U.S., alongside DraftKings (NASDAQ: DKNG), FanDuel is frequently praised for its technology and brand loyalty. Its dominance is further solidified by its innovations in same-game parlays, which are both popular with bettors and profitable for operators.

Expanding Through Acquisitions

While U.S. investors primarily view Flutter through the lens of FanDuel, the company’s global portfolio includes market-leading brands across Europe and Australia. Its dominance has been achieved through a strategic acquisition strategy.

With ongoing trends like digitization and the global legalization of online betting, Flutter appears well-positioned to capitalize on its expanding footprint, offering significant upside for investors.

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