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Jun 18 2020, 06:30 IST/BST
Flutter deserves attention. A compelling strategy is delivering a powerful growth platform in a global and structurally expanding industry. It presents a multi-year opportunity for the group – our estimates (updated for The Stars Group (TSG) deal completion and COVID-19) suggest that earnings can at least double over the next five years (c.15% CAGR). The stock’s recent outperformance is the first recognition of these improved growth prospects, in our view. Longer term, we see no reason why the share price cannot trace this attractive earnings trajectory should Flutter continue to deliver on its several value-creating opportunities. As such, we reiterate our ‘Outperform’ rating.