Stifel Cuts Q3 Estimates for Four US Betting Companies

Stifel analysts cut their third-quarter adjusted EBITDA estimates for DraftKings, Flutter Entertainment, Rush Street Interactive and Sportradar in a note dated October 25. The ratings for all four companies were left unchanged. According to the analysts, sports outcomes that favored bettors reduced the share of bets the companies kept. This offset part of the increase in US online betting volume.

Stifel lowered its 2026 adjusted EBITDA estimate for DraftKings along with its price target. The target fell from $36 to $32, and the Buy rating on the stock was maintained. The firm linked part of the estimate reduction to prediction market spending that the company disclosed in September. It also noted that a renewed push for growth could bring forward 2027 spending.

For Flutter, Stifel expects third-quarter adjusted EBITDA to come in 7% below the consensus estimate. The firm named Flutter its top stock pick ahead of results, citing a strengthening position in the US sports betting market. It said FanDuel grew faster than the overall market in August and September.

Stifel estimates that US online casino gross gaming revenue rose 13% year over year in the third quarter, down from 19% in the first quarter. The analysts attribute the slowdown more to the sector maturing than to the calendar or the World Cup.

For Rush Street, Stifel expects North American revenue growth to slow from 23% in the second quarter to 14%. The firm cut its price target from $34 to $30. It argued that the roughly 40% decline in the stock over seven weeks has already priced in much of the slowdown.