Entain Removed From FTSE 100 but Analysts Remain Optimistic

Entain has been relegated from the FTSE 100 Index, but the demotion comes as analysts are turning increasingly bullish on the gambling group. Entain has been demoted from the FTSE 100 Index after five years. (Image: Shutterstock) The FTSE 100 is a stock market index that includes the 100 most highly capitalized companies listed on the London Stock Exchange. Entain first joined the index in 2020, but was removed in the latest quarterly reshuffle after 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. It’s market capitalization currently stands at £3.34 billion ($4.51 billion). Entain has taken steps to stem the flow in recent months, following a turbulent few years following 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, analysts are increasingly bullish on Entain’s prospects. UBS reiterated its buy rating in August. It argued the operator offered “the highest theoretical upside potential within the European gaming sector.” However, UBS also sounded a note of caution. It said Entain’s risk profile remained elevated compared with peers. In September, Kepler Cheuvreux upgraded Entain to buy. It pointed to the group’s improving cash generation. Analysts said Entain’s target of more than £500 million ($676 million) in free cash flow by 2028 was “huge compared with a market cap of GBP3.3bn,” adding that the company could get “within touching distance” of that target. Kepler also argued that Entain’s planned exit from Central and Eastern Europe “has transformed the situation entirely,” potentially allowing larger shareholder returns to begin sooner than previously expected. Susquehanna also struck a bullish tone. It raised its price target to 1,200p from 1,100p. Deutsche Bank, meanwhile, highlighted the strength of the underlying business, noting that UK online revenue growth of 13% was “ahead of peers which have recently reported.” Entain is due to provide a Q3 trading update on October 15. The post Entain Removed From FTSE 100 but Analysts Remain Optimistic appeared first on Casino.org.