JP Morgan and Citi turn more positive on Entain and Flutter after steep 2026 share price falls

Analysts at major banks are becoming more upbeat about two of the gambling industry's largest listed groups, Entain and Flutter Entertainment, even though both have lost a large share of their market value in 2026.

Entain, which was recently moved from the FTSE 100 to the FTSE 250, has been described by JP Morgan as undervalued. The bank points to an "unjustified 45% share price decline this year despite improving fundamentals" and has reiterated its overweight rating. It trimmed its target price from £10.50 to £9.65, partly because of uncertainty over Brazil, but that level would still be more than 120% above the current price of around £4.31. JP Morgan also believes Entain could cope with a rise in Machine Games Duty to 40% in the UK Autumn Budget, a move rumoured to be under consideration to raise more than £300m. Chief Executive Stella David has said a doubling of the duty would contribute to around 1,500 sector-wide shop closures, a figure attributed to EY, though she did not specify closures for Ladbrokes and Coral.

The bank highlights operating improvements and the scale of Entain's brands. UK and Ireland iGaming revenue rose 13% at the interim stage, despite tax liabilities doubling to £50m. Entain's debt of £3.6bn is expected to fall following the sale of Entain CEE to EMMA Capital at a valuation of £1.9bn. The shares remain far below their September 2021 peak of £22.

For Flutter, Citi analyst Monique Pollard has raised her rating from neutral to buy. Flutter's stock is down 62% in 2026 and has not recovered since the company delisted from the London Stock Exchange and became solely listed in New York at the start of August. It recently touched $74, its lowest since early 2020, as tax burdens, regulation and the growth of US prediction markets weighed on sentiment. Flutter is also more exposed to Brazil than some rivals because of its $1bn commitment to Betnacional. Chief Financial Officer Rob Coldrake said growth plans there are on hold, while pointing to success in Italy and Turkey, led by Sisal. Last year's exit from India with the Junglee brand led to $500m in impairments.

Investor Kenneth Dart holds about 31.4% of the group's economic interest. Outgoing CEO Peter Jackson said UK tax increases give Flutter a chance to gain market share. Data from 33 analysts shows an average target of around $133, compared with a share price of $81.58.