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(Sharecast News) - Berenberg lifted its price target on Flutter Entertainment to 18,600p from 17,000p on Monday and reiterated its 'buy' recommendation, as it highlighted strong growth and balance sheet flexibility.
The bank said Flutter is its "top pick" in the leisure space and sits in its "growth" bucket for FY24.
"Our investment thesis for Flutter is simple - the business is a market leader and we expect strong growth both in existing markets and in the lucrative US market," it said.
"On the latter point, the company continues to go from strength to strength, holding more than half the betting market in Q4 and more than a quarter of the iGaming market."
Berenberg said its £186 price target is composed of £133 for the US business and £53 for the ex-US business.
"While shares are not cheap on 35.6x FY24 price-to-earnings, we expect the business to deliver a +35% EPS CAGR and for that multiple to fall rapidly in later years," it said.
