Investors might want to take a close look at Flutter Entertainment shares before next Tuesday’s quarterly results, even though there’s talk in New Jersey about nearly doubling taxes on online gaming and sports betting. Bank of America is sticking to its buy recommendation for the company, which owns FanDuel, and foresees a 19% increase from Tuesday’s closing price, with a target set at $310. Lately, the gambling company’s stock has been feeling the heat, having dipped over 2% in the last month and more than 4% just this past week.
The recent downward trend comes after Governor Phil Murphy of New Jersey unveiled a budget proposal for fiscal 2026 that suggests raising taxes on internet gaming and online sports betting to 25% from 15% and 13%, respectively. This follows similar propositions in other states like Maryland, where the fiscal 2026 budget plans to hike the sports wagering tax from 15% to 30%.
BofA analyst Adrien de Saint Hilaire commented on Wednesday that, although higher taxes in New Jersey aren’t ideal, the effect may not be as severe as the current stock weakness suggests. Adding a positive note, he highlighted the encouraging data for the first quarter of 2025, alongside optimistic profitability outlooks from competitors like DraftKings, BetMGM, and Caesars. Consequently, he anticipates Flutter will maintain its 2025 U.S. guidance when they announce their FY24 results on March 4.
Saint Hilaire also believes that any moves to further legalize online sports betting and gaming this year are unlikely to advance. Most analysts share a positive view on Flutter. Out of 20 analysts, 19 recommend buying, and one suggests holding, based on LSEG data. They collectively target a 12-month price of around $304, marking an expected rise of nearly 17% from Tuesday’s close.
Flutter’s shares rose more than 4% on Wednesday morning, buoyed by Bank of America’s endorsement, putting the company in a position to end a six-day losing streak.
