Rothschild & Co's recent downgrade of Flutter Entertainment reflects concerns about the prolonged turnaround of FanDuel, which has seen its EBITDA guidance for 2026 cut by 22% for the fourth consecutive time.
Analyst Andrew Tam emphasized that while Flutter's management is focused on long-term goals, investors are becoming increasingly cautious due to the company's inability to meet near-term expectations. The stock's price target has been reduced from $169 to $119, suggesting a potential upside of 33% from its recent close.
With shares plummeting 58% in 2026, investor patience is wearing thin, and many are advised to look beyond 2026 for potential recovery. Despite this, 23 out of 32 analysts still maintain a buy or strong buy rating on the stock, indicating a divided outlook among market experts