PDYPY - Flutter Entertainment downgraded at Wells Fargo amid valuation concerns

2023-05-04 09:31:39 ET

Flutter Entertainment ( OTCPK:PDYPY ) fielded a downgrade from Wells Fargo on Thursday as the bank’s analysts flagged a full valuation for the gaming name.

The analysis lauded the company’s “strong execution and attractive EBITDA growth,” but noted a stretched valuation. As the stock approaches the team’s prior Buy-recommendation price target of £166, a downgrade is prudent in their view.

“[Flutter Entertainment] is executing impressively: US EBITDA turns positive in ‘23, International is benefiting from Sisal revenue synergies, and it's gaining UK/I share,” the team noted. “However, its 14.5x 2024E EV/EBITDA reflects this momentum, and our £166 PT implies a modest 6% upside here.”

Shares of Flutter Entertainment ( OTCPK:PDYPY ) edged modestly lower after the market open on Thursday.

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