Citi upgrades Flutter after 13% share price slide
Citi upgraded Flutter Entertainment to 'neutral' after the company’s Q2 results, citing a 13% share price drop since April that reset expectations. Citi trimmed its target to $93. Analyst Ross MacDonald cut revenue and profit forecasts, reflecting Flutter’s revised US guidance. Flutter lowered 2026 US revenue and adjusted EBITDA guidance by 5% and 22% respectively.
How this was made
The 30-second read
Why it matters
Citi trimmed its target price and cut revenue, profit, and EPS forecasts, reflecting Flutter’s own American guidance downgrade. It also pushed out buybacks to 2028 due to debt constraints, while applying a higher multiple to the US business based on DraftKings.
Market read
For traders, the actionable element is the combination of an upgrade to neutral with a lower target and materially reduced 2026-27 estimates, plus a delayed buyback timeline.
What to watch
The article does not quantify how Q2 results changed underlying KPIs (e.g., margins, handle, retention), so the market may react more to operational details than to the rating change.
Background
Citi upgraded Flutter Entertainment after its Q2 results, citing a reset in expectations following a 13% share price decline since April.
Ticker impact
Citi upgraded Flutter to neutral after Q2 results, saying the 13% April-to-date slide reset expectations and revised forecasts.
Near-term: modest support from the upgrade, but limited upside given forecast cuts and buyback deferral to 2028.
The article provides specific forecast adjustments (US revenue and adjusted EBITDA, group revenue/EBITDA, EPS) and a concrete buyback timing constraint, which should anchor valuation expectations even after the rating change.
Market effects
Reinforces a cautious stance on US online gambling operators, with valuation sensitivity to rebased guidance and leverage constraints.
US-focused read-through via DraftKings multiple and Flutter’s US business assumptions.
Limited, mostly affects European-listed gambling sentiment and cross-Atlantic sportsbook comps.
Counterpoint
The upgrade may be more about expectation reset than fundamental improvement, so traders could fade it if the market focuses on the magnitude of forecast cuts.
Key entities
- companyFlutter Entertainment PLC
Subject of the article; Citi upgraded to neutral and revised US and group financial forecasts after Q2 results.
- institutionCiti
Broker issuing the upgrade, target cut, and forecast changes tied to Flutter’s rebased US guidance.
- companyDraftKings
Used as a valuation multiple reference point for Flutter’s US business in Citi’s sum-of-the-parts view.
