Rothschild downgrades Flutter stock rating on guidance cuts
Rothschild downgraded Flutter Entertainment's stock rating on Monday, reducing its price target from $169.00 to $119.00. The firm cited four consecutive cuts to guidance for 2026 as the reason for the downgrade. Flutter had lowered its 2026 guidance again at its second-quarter results, with FanDuel's midpoint EBITDA guidance cut 22%, amounting to a 7% cut at the group level.
Despite the turbulence, analysts believe the stock is undervalued at current levels, with Pro Research Reports available for further insights. The downgrade came months after Flutter had told investors that its lowered 2026 guidance feels achievable, marking another transitional year for the company. Rothschild expects FanDuel's turnaround to take longer than anticipated, with the firm's 2027 targets of $21 billion in revenues at 25% EBITDA margins pushed out to the right.
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