DAVY VIEW

Flutter Entertainment has issued a release ahead of its Capital Markets Day (CMD) later today. This references the group’s considerable global market opportunity ($370bn) and the sustainable advantages that will allow it to capture that growth and build operating leverage. On top of this it will have the capacity to invest in organic growth, bolster growth via M&A and return cash to shareholders ($5bn buyback over three to four years). The growth trajectory set out in the statement looks highly attractive and attainable, and we expect the detail at the CMD to drive home the scale and diversification benefits that the group currently enjoys. The growth paradigm and capital returns alluded to should be very well received in the context of a group valuation of 11.5x 2026 EV/EBITDA.