#1
#1 out of 1
business14h ago
FanDuel's parent stock is under pressure. Citi doesn't see a recovery anytime soon
- Citi downgrades Flutter Entertainment's FanDuel to sell, saying recovery in the US is unlikely soon.
- Citi cites reduced conviction in 2026 US growth forecasts and regulatory uncertainty around FanDuel Predicts.
- FanDuel’s engagement weakened after a less buzzy NFL season, per Citi’s notes.
- Flutter Entertainment shares have declined substantially in 2026 as the market reassesses FanDuel’s prospects.
- FanDuel plans to invest up to $300 million in its new prediction markets, raising regulatory concerns.
- FanDuel began rolling out its prediction markets in the U.S. late last year amid growing interest in event contracts.
- Bernstein projects the prediction market industry could reach $1 trillion by 2030, though regulatory hurdles persist.
- Most of Flutter’s peers on the street maintain a buy or strong buy rating despite the downgrade.
- Flutter Entertainment did not immediately respond to CNBC's request for comment.
- Citi’s downgrade contrasts with broader analyst optimism about Flutter, highlighting mixed sentiment on FanDuel's path.
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