The Flutter Entertainment Bull Case: Are FanDuel And DraftKings A Sports Betting Duopoly?
Portfolio Pulse from Hayden Buckfire
Oppenheimer analyst Jed Kelly suggests that DraftKings Inc (NASDAQ:DKNG) and FanDuel, owned by Flutter Entertainment PLC (NYSE:FLUT), are forming a sports-betting duopoly. Both companies are outperforming despite competition from PENN Entertainment Inc (NASDAQ:PENN) and MGM Resorts International (NYSE:MGM). Kelly initiated coverage on Flutter with an Outperform rating and a $240 price target, citing its high market share and resilience to state-level taxes.
June 04, 2024 | 3:37 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
DraftKings is seen as part of a sports-betting duopoly with FanDuel, outperforming despite competition. Analyst Jed Kelly highlights its advantage in customer acquisition costs.
DraftKings is highlighted as a key player in the sports-betting market, with specific advantages in customer acquisition costs. The positive analyst rating and market share dominance suggest a likely short-term price increase.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Flutter Entertainment, owner of FanDuel, is rated Outperform by Oppenheimer with a $240 price target. The company is noted for its high market share and resilience to state-level taxes.
Flutter Entertainment is the primary focus of the analyst's positive outlook, with a high market share and resilience to state taxes. The Outperform rating and price target suggest a likely short-term price increase.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Caesars Entertainment's new iGaming product is not resonating at scale, indicating potential struggles in the digital market.
Caesars Entertainment's new iGaming product is not performing well, suggesting potential short-term price decline.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
MGM Resorts International is facing challenges in maintaining its iGaming market share in states with a land-based presence.
MGM Resorts is noted as losing iGaming market share, which could negatively impact its stock price in the short term.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 60
NEGATIVE IMPACT
PENN Entertainment is struggling with its digital strategy, facing an activist investor campaign and failing to gain significant market share post-Barstool rebranding.
PENN Entertainment is highlighted as struggling in the digital space, with specific issues in gaining market share and facing an activist investor campaign. These factors suggest a likely short-term price decrease.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70