Flutter Entertainment is undervalued given 'thriving' US business - Peel Hunt
Dec. 06, 2021 12:06 PM ETFlutter Entertainment plc (PDYPF), PDYPYBy: SA News Team
- Flutter Entertainment (OTCPK:PDYPF +2.0%) jumps as Peel Hunt reiterates its Buy rating and says the stock is undervalued.
- “Flutter has remarkably successful businesses in the US, and we expect them to continue to thrive,” commented Peel Hunt analyst Ivor Jones. However, Jones writes that it is difficult to identify a catalyst to the upside as “valuations in the US are changing and tough questions are being asked about when profit will be achieved and what multiples to apply."
- Peel Hunt lowers its price target on the stock to 14,500 pence (~$192) from 17,000 pence (~$225) as the firm sees a valuation of 15x earnings rather than 20x earnings.
- SA contributor Howard Jay Klein agrees with Peel Hunt and writes that Flutter's U.S. business appears strong despite global headwinds.