Canaccord Cuts Flutter Target Price to $270 Retains Buy on Higher Hold Rates
Canaccord lowered its target price on Flutter Entertainment by 10% to $270 from $300 but maintained a Buy rating, calling the January selloff in digital gambling stocks an overreaction. December 2025 handle fell 9.3% in Nevada and 14.4% US-wide, while hold rates boosted revenue by 351.6% and 78.4% respectively.
1. Analyst Rating and Target Adjustment
Canaccord trimmed its target price on Flutter Entertainment by 10% to $270 from $300 but retained a Buy rating, arguing that market reaction to recent betting data was excessive.
2. Market Selloff Triggered by Handle Decline
Investor sentiment soured in January after reports showed lower total bets, prompting a sector-wide selloff despite underlying revenue dynamics improving.
3. Nevada December 2025 Performance
December handle in Nevada registered $747 million, down 9.3% year-over-year, while revenue soared 351.6% to $68 million as hold rate climbed to 9.05%.
4. US Nationwide Betting Trends
Across 35 states, December handle fell 14.4% to $13.5 billion but revenue rose 78.4% to $1.7 billion, driven by an improved hold rate of 12.3%, underpinning Flutter’s growth prospects.