Flutter Entertainment Set to Debut on NYSE, Analysts Say DraftKings Will Remain Strong
Flutter Entertainment, the parent company of popular online sports betting platform FanDuel, is preparing for its debut on the New York Stock Exchange. Despite this competition, analysts believe that U.S. rival DraftKings will be able to hold its ground.
Flutter, an Ireland-based gambling business, not only owns FanDuel but also has a presence in the global sports-betting market with brands like Paddy Power, PokerStars, and Sportsbet.
On Monday, Flutter will be dual-listed on the New York Stock Exchange under the ticker symbol FLUT. This move will provide American traders with the opportunity to invest in another major sports betting company, directly competing with DraftKings, ESPN Bet by Walt Disney, MGM Resorts International, and Caesars Entertainment.
While DraftKings has yet to comment on the listing, industry experts are confident in its ability to withstand Flutter's entry into the U.S. market.
Flutter's shares have been listed on the London Stock Exchange since 2019 under the ticker symbol FLTR. Additionally, its American depositary receipts currently trade over the counter under the ticker symbol PDYPY—a nod to the company's original name, Paddy Power Betfair.
In anticipation of the NYSE listing, Flutter's CEO Peter Jackson expressed excitement about expanding their reach in the capital markets and making the company more accessible to U.S. investors. The upcoming listing marks a significant milestone for Flutter Entertainment.
While there are numerous online sports betting platforms available, Flutter and DraftKings consistently compete for dominance in the U.S. market. FanDuel and DraftKings are the preferred choices for most online gamblers placing parlays on sporting events.
Given this competitive landscape, some may wonder if Flutter's listing will divert attention or investors away from DraftKings. However, industry analysts assure that it is highly unlikely to have a substantial impact on DraftKings' market position.
Flutter's Listing and Its Impact on DraftKings Stock
According to research analysts, Flutter's recent listing should not be a cause for concern for DraftKings investors. Jordan Bender, a research analyst at Citizens JMP Securities, emphasizes that these companies trade based on valuation and are worth investing in. He dismisses the notion that incremental capital needed to buy Flutter stock will solely come from DraftKings, stating that there is no evidence to support this claim. Bender rates both DraftKings and Flutter stocks as Buy.
Stifel analyst Jeffrey Stantial echoes Bender's sentiments. He highlights that investors would only choose Flutter stock over DraftKings if they were specifically interested in a more international business. While DraftKings has a focus on the U.S., Flutter has brands operating worldwide. Stantial also recently upgraded shares of DraftKings to Buy from Hold.
It's important to note that DraftKings stock has been performing well recently. Over the past 12 months, the stock has gained an impressive 157%. In the current month, shares have increased by 9.6%, making it the best month for DraftKings since November 2023. In November, the company reported a 40% increase in monthly unique players, reaching 2.3 million in the quarter.
Furthermore, DraftKings stock experienced additional gains this week following reports from Sportico about advanced talks between Barstool Sports and DraftKings regarding a marketing deal. However, DraftKings declined to comment on the report.
Investors may be eager to learn more about this potential deal and the company's response to Flutter's listing when DraftKings releases its fourth-quarter financial results on Feb. 15.
Despite the emergence of Flutter, investors should not assume that it poses a threat to DraftKings' stock. The future remains bright for DraftKings, and its strong performance suggests that it can continue to thrive in the market.
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