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Mar 23 2021, 16:40 GMT
Ratings and price correct at time of issue
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The US online gambling market is evolving rapidly. Our analysis suggests that it is now likely to be significantly larger and more concentrated than previously expected. For a select few, therefore, a truly unique earnings opportunity exists. We believe Flutter is most likely to be the long-term US leader. It remains our preferred play on this opportunity (‘Outperform’ rating; 12-month price target £230). We expect DraftKings (initiate with ‘Neutral’ rating; 12-month price target $58) to also be among the top tier of operators, although its lofty valuation is pricing in a dominant and, in our view, unlikely US market leadership position at maturity.