Entain Relegated From FTSE 100 as Analysts See Substantial Upside

Entain has been relegated from the London Stock Exchange’s (LSE) FTSE 100 Index, but the demotion comes as analysts are turning increasingly bullish on the gambling group.

The FTSE 100 is a stock market index that includes the 100 most highly capitalized companies listed on the LSE.

Entain first joined the index in 2020 but was removed in the latest quarterly reshuffle following a difficult five-year stretch in which its shares lost more than 70% of their value. The company will now move into the FTSE 250 Index. Its market capitalization currently stands at £3.34 billion ($4.51 billion).

Down But Not Out

Entain has taken steps to stem the decline in recent months, following a turbulent period triggered by the exit of long-serving CEO Kenny Alexander in 2020.

Since then, the company has gone through four CEOs. It also faced ongoing legal problems, including a high-profile bribery case linked to its operations in Turkey.

In June, it announced a planned exit of Entain CEE, which focused on the Polish and Croatian markets. At the time, CEO Stella David said the move “reflects our ongoing focus on maximising value for shareholders.”

Last month, Entain pointed to “strong momentum” when reporting a 5% rise in net gaming revenue (NGR) for the first half of 2026. The company pointed to impressive UK growth, despite the increase in remote gaming duty during the period.

Analysts Turn Bullish on Entain

Despite the FTSE 100 demotion, financial analysts are growing increasingly optimistic about Entain’s outlook.

UBS reiterated its “Buy” rating in August, arguing the operator offered “the highest theoretical upside potential within the European gaming sector.” However, the firm sounded a note of caution, warning that Entain’s risk profile remains elevated relative to its peers.

In September, Kepler Cheuvreux upgraded Entain to “Buy,” citing improving cash generation. Analysts noted that Entain’s target of more than £500 million ($676 million) in free cash flow by 2028 was “huge compared with a market cap of £3.3 billion,” adding that the company could get “within touching distance” of that goal.

Kepler added that the group’s planned exit from Central and Eastern Europe “has transformed the situation entirely,” potentially accelerating capital returns to shareholders.

Susquehanna also struck a bullish tone, raising its price target on the stock from 1,100p to 1,200p. Meanwhile, Deutsche Bank highlighted underlying business strength, noting that UK online revenue growth of 13% was “ahead of peers which have recently reported”.

Entain is scheduled to issue its Q3 trading update on October 15.