Flutter Entertainment Shares Downgraded as Headwinds Continue to Mount

Flutter Entertainment (LON: FLTR) (NYSE: FLUT) shares came under further pressure after Craig-Hallum downgraded the stock to Hold from Buy, citing a series of accumulating transitory headwinds that are expected to constrain near-term performance.

The move comes as the shares have fallen 16.3% year to date and are down 32.6% over the past 12 months.

Analyst Ryan Sigdahl maintained a $200 price target and said the firm still views Flutter as an attractive long-term investment, highlighting its leading portfolio of global betting and gaming brands and a highly scalable financial model.

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However, he warned that the mounting pressures are likely to limit upside in shares in the near-term, even as the firm remains positive biased.

The downgrade follows a similar move earlier this month from Wells Fargo, which cut the stock to Equal Weight from Overweight.

Analyst Trey Bowers reduced the price target to $228 from $248 and said that, while long-term growth prospects in digital gaming remain strong, DraftKings appears better positioned for near-term gains.

Wells Fargo pointed to softer handle growth and elevated promotional spending at Flutter, which it said were only partially offset by improved year-over-year net hold. Those dynamics are expected to produce what the bank described as a “miss” relative to expectations.