Entain has been demoted from the FTSE 100 Index after five years, but analysts are growing increasingly optimistic about the gambling group’s future.
The FTSE 100 is a stock market index that includes the 100 most highly capitalized companies listed on the London Stock Exchange.
Entain joined the index in 2020 but was removed in the latest quarterly reshuffle due to a challenging five-year period where its shares plummeted by over 70% in value. The company is now transitioning to the FTSE 250 Index with a market capitalization of £3.34 billion ($4.51 billion).
In recent months, Entain has implemented measures to address its challenges following the departure of CEO Kenny Alexander in 2020. The company has since had four CEOs and faced legal issues, including a high-profile bribery case related to its operations in Turkey.
In June, Entain announced plans to exit Entain CEE, focusing on Polish and Croatian markets, to enhance shareholder value. CEO Stella David stated that the decision reflects the company’s commitment to maximizing shareholder value.
Despite the FTSE 100 demotion, Entain reported a 5% increase in net gaming revenue (NGR) for the first half of 2026, attributing the growth to strong performance in the UK despite higher remote gaming duty.
Analysts Turn Bullish on Entain
Despite the FTSE 100 demotion, analysts are increasingly optimistic about Entain’s future.
In August, UBS reiterated its buy rating for Entain, highlighting the company’s potential for growth within the European gaming sector. However, UBS also noted that Entain’s risk profile remains elevated compared to competitors.
In September, Kepler Cheuvreux upgraded Entain to buy, citing improved cash generation and a target of over £500 million ($676 million) in free cash flow by 2028. Kepler suggested that Entain’s exit from Central and Eastern Europe could lead to increased shareholder returns sooner than expected.
Susquehanna raised its price target for Entain, while Deutsche Bank emphasized the company’s strong underlying business and UK online revenue growth ahead of industry peers.
Entain is scheduled to provide a Q3 trading update on October 15.