The world’s largest listed gambling company could gain further traction as it ventures into the US market with industry giant FanDuel, who could well prove to be a catalyst for an upside in Flutter stock.
Flutter CEO Peter Jackson last month told Flutter investors that the company are looking into an additional US listing of shares, which could see the company on the New York Stock Exchange or Nasqad.
Observers and analysts have suggested a move could materialise as early as the fourth quarter, while also presenting several unique opportunities for Flutter investors such as the removal of the 20% conglomerate discount applied to Flutter’s US business currently.
For context, Flutter already trades in the US as an over-the-counter stock, meaning their exposure in the States isn’t as prevalent as if it were listed on one of the larger exchanges.
However, Susquehanna analyst Joe Stauff has suggested the market size across the pond could be as large as the nine biggest countries it currently competes in, within the next two years.
The betting company’s other brands include Paddy Power, Betfair and Poker Stars among others, and the Dublin-based behemoth’s stock in the UK appears to be iron-clad at this moment in time.
It also trades at 24.7 times estimated 2024 earnings, which is well below an average of around 34 times among its competitors; an attractive opportunity for investors yet to venture into the company.
Flutter’s US assets include a monumental 95% stake in FanDuel, who control nearly 50% of the market, and became the first of its kind to report a profitable quarter.
Despite the success of the company in the States, many within the industry have been quick to point out that the majority of Flutter’s operations still reside elsewhere , and as such shares are dependent on their performances in these nations.
However, a move to list the company on the exchange in the USA could prove to be a catalyst for investors yet to be convinced, particularly with an inevitable lift amid FanDuel’s brand recognition skyrocketing as more and more states pass gambling into law.