Jefferies has reiterated a ‘buy’ rating on Flutter Entertainment, setting a price target of 22,000p.

Despite increased gaming taxes in Illinois potentially impacting earnings, the American investment bank is optimistic about the gaming group’s prospects, especially its strong US market presence through FanDuel.

FanDuel continues to dominate with a 45% market share in gross gaming revenue, outperforming competitors.

Jefferies adjusted its underlying earnings (EBITDA) estimates, reducing them by 1% for fiscal years 2024 and 2025, and lowered the earnings per share estimates by 4% for the same periods to take account of the tax hike.

It views the ongoing legalization of sports betting in the United States as a significant growth opportunity for Flutter. The company’s advanced digital technology and diversified portfolio support this positive outlook.