Canaccord Thinks the Selloff in Gambling Stocks is Overdone, Retains Buy Rating on Flutter Entertainment (FLUT)

Flutter Entertainment plc (NYSE:FLUT) is one of the 11 Best Beaten Down Growth Stocks to Buy Now.

Canaccord cut its target price on Flutter Entertainment by 10% on February 3 to $270 (from $300). Despite the TP reduction, it retained its Buy rating on FLUT’s shares. The firm noted that investor sentiment on digital gambling stocks soured in January, due to state reports showing slowing growth in handles (total $ bets) in December (which likely worsened in January), leading to a selloff. Canaccord, however, thinks that this was an overreaction by the market, as higher hold rates (% of $ bets earned as revenue by a gambling operator) more than offset the handle decline. Nonetheless, the firm believes that Flutter’s current price, combined with the lowered expectations from the market, provides an attractive entry point for investors today.

On the topic of handle and hold rates, the Nevada Gaming Control Board released its December 2025 statistics on January 28. The report showed total handle for December 2025 of $747 million, which is 9.3% lower than the $824 million recorded the prior year. Despite this decline in total bets, revenue rose 351.6% to $68 million (from $15 million), as the hold rate improved to 9.05% from 1.81%.

US-wide figures showed a similar trend. Compiled data from 35 states showed a total handle for December 2025 of $13.5 billion, which is 14.4% lower than the $15.8 billion recorded the previous year. Despite this decline in total bets, revenue rose 78.4% to $1.7 billion (from $0.9 billion), as the hold rate improved to 12.3% (from 5.9%).

Flutter Entertainment plc (NYSE:FLUT) is an online betting and gaming company, operating mainly in the United States, the UK, Ireland, and Australia. The company is based in New York, New York, and was founded in 1988.

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Disclosure: None. This article is originally published at Insider Monkey.