Oppenheimer initiates coverage on Flutter Entertainment

Flutter Entertainment (FLUT) — the parent company of FanDuel — has received an Outperform rating from Oppenheimer after analysts initiated coverage of the sports betting company. Yahoo Finance Senior Reporter Alexandra Canal reviews Wall Street's outlook on the betting platform.

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This post was written by Luke Carberry Mogan.

Video transcript

Shares of flutter moving higher.

After Oppenheimer, Oppenheimer initiating coverage of the company with an outperform rating, the analysts saying that flutter is outpacing competitors at merchandizing pricing and innovating parlay products.

Yahoo Finance senior reporter Alexandra Canal has more on this story.

Now, ali this is one of the kind of online gambling services in the space.

Talk to me about what exactly this news means for flutter moving forward.

Flutter is a parent company of fan and even anecdotally, this is one of the top platforms if you are a sports better, if you are a gamer in any sense and you want to go and place your bets, you're probably going to fan as one of those options.

Now, according to this Oppenheimer note, they say that flutter provides players the most pre built selections with seamless be building experience and we have seen a flutter.

No pun intended a positive sentiment across Wall Street in recent weeks.

When it comes to this company, Jeffries reiterated their by reading last week J PM, reiterated its overweight rating.

We also saw a price target raise and buy from Deutsche Bank and at the end of May, we did see Flutter complete its move a primary listing of shares from London to New York.

They also recently moved their operational headquarters to New York switched up the CFO as a result of that CEO Peter Jackson said that both the primary listing move as well.

That HQ move represented basically the confidence that they have in the US betting industry continues to be one of the most profitable areas for the company, especially as we've seen a surge of legalized sports betting in more than 20 states.

Now, I will say that there's still some potential risks here moving forward.

I mean, Illinois Senate, they passed a bill which will raise taxes on sports betting operators.

And it's interesting to compare the tax rates to some, those other states because New York has a 51% flat rate for those operators.

P A has a 36% rate.

But in Illinois, they are proposing a rate that would depend on the revenues that you generate.

So the more money that you make, the more you'd have to pay.

So that's a potential risk moving forward for not just flutter, but really all of these companies, right?

The tax implications are huge for a lot of these online betting companies.

And I know you follow all of those differences closely for us, at least.

So, thanks so much for joining us.

We really appreciate it.