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Market Analysts Predict Turnaround for Entain and Flutter Despite 2026 Stock Declines

By jili tutorial · October 9, 2026

Market Analysts Predict Turnaround for Entain and Flutter Despite 2026 Stock Declines

Overview: Gambling Giants Facing Turbulent Times

Despite significant share price declines in 2026, major gambling operators Entain and Flutter Entertainment are drawing optimistic outlooks from leading financial institutions. Both companies have faced substantial challenges - from regulatory pressures to market exits - yet analysts identify undervalued potential suggesting possible rebounds.

Entain’s Path to Recovery: An Undervalued Opportunity?

FTSE Downgrade Masks Fundamental Strengths

Recently demoted from London’s FTSE 100 to the FTSE 250 index, Entain has seen its share price drop approximately 45% year-to-date. However, JP Morgan analysts argue this sell-off is “unjustified given improving fundamentals,” maintaining their ‘overweight’ rating. Key factors include:

The Brazilian Gambling Dilemma

While Brazil presents significant risk (prompting JP Morgan to reduce price targets from £10.50 to £9.65), analysts still see 120% upside from current £4.31 levels. The political uncertainty around online gambling regulation in Brazil affects all operators, but Entain maintains strategic positioning should the market stabilize.

UK Machine Games Duty Threat

The Autumn Budget looms large, with potential doubling of MGD to 40%:

Flutter Entertainment: Betting on a US-Led Recovery

From LSE to NYSE: A Strategic Transition

After delisting from London in August 2026 to focus on NYSE trading, Flutter’s shares have declined 62% this year. Yet Citi analyst Monique Pollard recently upgraded the stock from ‘neutral’ to ‘buy’, citing:

The Billionaire’s Vote of Confidence

Notable investor Kenneth Dart has increased his economic interest to 31.4%, representing a $14.16bn market cap bet on Flutter’s recovery. Management remains optimistic, with outgoing CEO Peter Jackson highlighting UK tax changes as a market share opportunity.

Brazil and Regulatory Headwinds

Flutter faces particular exposure with its $1bn Betnacional commitment in Brazil - a market creating anxiety after last year’s $500m impairment from exiting India. However:

Comparative Analysis: Why Analysts See Value

MetricEntainFlutter
2026 Price Decline45%62%
Current Analyst SentimentOverweight (JP Morgan)Buy (Citi)
Key Growth MarketsUK, BrazilUS, Italy, Turkey
Major Risk FactorsMGD increase, Brazil regulationBrazil exposure, prediction markets
Price Target Upside120%+63%

The Road Ahead: Regulatory Realities and Recovery Potential

While both companies face significant challenges, several factors suggest potential rebounds:

  1. Scale Advantages: Both maintain strong market positions that smaller competitors can’t match
  2. Portfolio Diversification: Geographic/product spread helps mitigate localized risks
  3. Operational Improvements: Cost controls and debt reduction strengthening balance sheets
  4. Valuation Gaps: Current prices don’t reflect fundamental business strengths

As CFO Rob Coldrake noted, “In turbulent markets, the strong get stronger.” For investors willing to stomach regulatory uncertainty, these gambling giants may present compelling turnaround opportunities at current depressed valuations.