Investors should snatch up shares of Flutter Entertainment following a recent sell-off, according to Wells Fargo. Analyst Daniel Politzer upgraded shares of the online sports betting company to overweight from equal weight. The change comes after the stock sold off 8.8% on Friday following reports that the U.K. is weighing higher taxes on the gambling industry. “Friday’s sell-off reflects a near-worst case UK tax scenario,” he wrote. However, “FLUT management is realistic about gaming taxes (‘they only go up over time’), but its track record highlights its attractive UK industry positioning (#1 overall w/ 30% market share), which provides some insulation; larger operators have historically been able to withstand costly regulatory changes better than smaller competitors.” Politzer also upped the firm’s price target to $295 from $224 a share, suggesting 34% upside from Friday’s close. Shares have surged about 23% year to date and popped more than 5% in the premarket Monday. The analyst noted that key performance indicators suggest the FanDuel parent’s financial targets — including expectations for 15% to 17% revenue growth at compounded annual growth rate through 2027 — appear “fairly conservative.” Wells Fargo isn’t the only firm turning more bullish on Flutter. Bank of America analyst Adrien de Saint Hilaire reinstated coverage of the company with a buy rating, saying that FanDuel’s “unique positioning” coupled with a “vigorous market backdrop” should power stronger-than-expected EBITDA growth. FLUT YTD mountain Shares this year “We believe Flutter’s recent U.S. listing along with the company’s orientation away from European gambling and into U.S. consumer Internet should lead to a reappraisal of valuation,” he wrote. “Despite similar-to-better business and financial characteristics, Flutter trades at a 35% discount to its “new peers”, highlighting strong re-rating potential.” His $300 price target implies that shares could gain nearly 37% from Friday’s close.