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Nov 9 2021, 07:15 GMT
While the scale and timing of Flutter estimate revisions have caught many by surprise, the much-anticipated Gambling Act review has meant that UK Online forecasts for all operators have been subject to change for some time. In many ways, the safer gambling initiatives that are now being introduced, including at Flutter, were always likely, and represent something of a ‘pull forward’ of much of an inevitable UK earnings adjustment. It should not detract from the momentum elsewhere in the group, especially in the US where its strong performance in September and positive market share outlook for Q4 are important reminders of the true value drivers of the Flutter investment thesis. While it may take some time for group estimates to settle, a compelling opportunity is already apparent. We reiterate our ‘Outperform’ rating.