What Happened?
Shares of global online betting powerhouse Flutter Entertainment (NASDAQ: FLUT) jumped 3.1% in the pre-market session following an upgrade from a Neutral rating to a Buy rating by Citi analyst Monique Pollard.
Pollard’s upgrade marks a significant turnaround from a previous Sell rating in April, which was adjusted to Neutral in August. She noted that the current consensus expectations necessitated a significant reset, particularly after management adjusted their mid-term projections.
Market Reaction
Flutter has faced considerable selling pressure, dropping over 65% year-to-date and hitting a 52-week low of $73.50, compounded by the recent cessation of its operations in Brazil. The recent downgrade reflects concerns over international headwinds and estimate reductions, coupled with indicated stabilization in the U.S. market share for FanDuel.
After the initial increase, shares settled at $76.44, representing a 0.2% rise from the previous close.
Is Now the Time to Buy Flutter Entertainment?
For those looking to delve deeper, a comprehensive analysis report is available here.
What Is The Market Telling Us?
Flutter’s shares have demonstrated considerable volatility, with 23 significant moves exceeding 5% over the past year. Today’s market activity suggests that this news holds some significance, although it does not fundamentally alter the broader perception of the business.
Past Performance
Flutter’s largest drop last year was a 14.6% decline, occurring after disappointing fourth-quarter 2025 results that fell short of analyst predictions.
Despite reporting revenue of $4.74 billion—a 24.9% year-over-year increase—the company posted a GAAP loss of $0.05 per share, a significant deviation from the expected profit. This performance raised concerns about profitability, with operational margins declining to 5.4% and free cash flow margins dropping to 2.9%.
Overall, Flutter is down 65% since the start of the year, currently trading at $76.44, and sitting 69.7% below its 52-week high of $252.34 from October 2025. An investment of $1,000 in Flutter shares five years ago would now be worth only $374.57.
