DAVY VIEW

Flutter Entertainment’s (Flutter) acquisition of The Stars Group (TSG) reflects the now much-changed opportunity and risk set for the global gaming sector. It should materially improve the group’s position in relation to fast-emerging new opportunities (US, Rest of World) but also its more core, more at-risk, markets. All told, it should strengthen the group’s medium-term growth prospects, with strategic merits outweighing identifiable risks. We reiterate our ‘Outperform’ recommendation and believe the company’s enhanced position has yet to be reflected in the stock price.