Investors should consider buying shares of Flutter Entertainment ahead of its quarterly results next Tuesday despite recent proposals in New Jersey to almost double taxes on iGaming and sports betting, according to Bank of America. The Wall Street bank reiterated its buy rating on the FanDuel parent, and its $310 price target implies 19% upside from Tuesday’s close. Shares of the gambling company have come under pressure in recent weeks, with the stock falling more than 2% over the past month and more than 4% this week alone. FLUT 1M mountain FLUT, 1-month The move lower has come as New Jersey Governor Phil Murphy proposed a fiscal 2026 budget starting July 1 that included plans to raise the internet gaming and online sports wagering tax rates to 25% from 15% and 13%, respectively. That follows similar actions from governors in other states including Maryland, where its fiscal 2026 budget proposal seeks to increase the state’s sports wagering tax rate to 30% from 15%. “News of higher taxes in NJ is negative, but we think the impact is far less than what the recent share price weakness suggests,” BofA analyst Adrien de Saint Hilaire wrote on Wednesday. “Meanwhile, we are encouraged by the strong 1Q25 data so far and note upbeat comments on profitability from peers DraftKings , BetMGM and Caesars . We thus expect Flutter will reaffirm its 2025 U.S. guidance at the upcoming FY24 results on 4th March.” Additionally, the analyst believes that any attempts to further legalize online sports betting and iGaming are unlikely to pass this year. Most of Wall Street is also bullish on Flutter. Of 20 analysts covering Flutter, 19 rate it the equivalent of buy with one at a hold, according to LSEG data. Analysts’ consensus 12-month price target stands at about $304, or almost 17% above Tuesday’s close. close. Shares rebounded in early trading Wednesday, rising more than 4% on the heels of the BofA call, putting Flutter on pace to snap a six-day decline.
