City Analysts Optimistic Over Entain And Flutter Future Performances

City analysts have reportedly changed their tune over embattled betting giants Entain and Flutter, and are now optimistic about their future performances. Ladbrokes and Coral owner Entain, which was booted off the London FTSE 100 last month and demoted to the FTSE 250 index, experienced a 45% decline in share value over the past 12 months.

Flutter, the face behind Paddy Power, Betfair, and Sky Bet, delisted from the London Stock Exchange (LSE) in August, and its share price crashed dramatically after making the New York Stock Exchange (NYSE) its primary listing. Despite worries permeating these companies, the city has identified green shoots of recovery.

Entain shares undervalued

JP Morgan, one of the world’s largest investment banks, had previously circled Entain’s stock performance as cause for concern. Yes, JP Morgan had lowered its target price of Entain from £10.50 to £9.65 to account for possible setbacks in Brazil due to an upcoming iGaming ban, and re-evaluated its rating. That said, the target price would still denote an increase of over 120% on its current share price of £4.31.

Entain defied popular expectations in a margin-squeezed market, lifting UK and Ireland (UK&I) revenues by 13% in the first half of 2026 even though tax liabilities doubled to £50 million. While Entain has struggled to reach its peak share price of £22 achieved in September 2021, JP Morgan is confident the scale and presence of Entain brands combined with product improvements can revive their fortunes.

Budget fears shelved for now

The Budget is coming into sharp focus, and it is widely expected that the UK Chancellor, John Healey, will double the rate on Machine Games Duty (MGD) on Category B machines to 40% to address the government’s fiscal agenda. JP Morgan, however, believes that Entain is well positioned to survive the economic headwinds.

Nevertheless, this has done little to alleviate Entain’s fears who launched a campaign last week, ‘What’s at Stake’ to shine a light on the retail betting industry and the ramifications it would have on jobs and shops. Entain CEO Stella David has also revealed her worries, pointing to modelling carried out by accountancy firm Ernst & Young which showed a significant hike could lead to 1,500 shops closing.

The MGD measures outlined would represent a further blow for bookies who have borne the brunt of the tax rises announced in last year’s budget. General betting duty paid on online sports bets will go up from 15% to 25% of gross gambling yield (GGY) in April 2027, with horseracing exempt, and this follows on from a hike in remote gaming duty (RGD) on online casino bets from 21% to 40% of GGY.

Position on Flutter changes too

Flutter, who saw their stock tumble to the tune of 62% in 2026, are also getting backing from the City. Kenneth Dart, a prominent gambling investor, has been building up control of the company, holding roughly a 31.4% economic interest in the business.

Although Flutter’s share price recently dropped to £55, its lowest point since 2020, Citi analyst Monique Pollard reviewed Flutter’s rating, re-adjusting the rating from ‘neutral’ to ‘buy’. While Flutter and Entain have absorbed excessive share price pressure, the UK budget will be telling in determining whether Flutter and Entain can can mount a recovery or will be blown off course in meeting their long-term goals.