Key Moments:
- FTSE Russell’s indicative review lists Entain for removal from the FTSE 100, with the final decision to be made after the market closes on 2 September 2026
- Entain’s market capitalization fell to approximately £3.3 billion in late August 2026, following a rise in UK remote gaming duty to 40%
- Analyst 12-month share price targets average 992p, well above the current price of 517p as of 27 August 2026
FTSE 100 Membership Under Review
Entain is positioned to potentially drop out of the FTSE 100 and join the FTSE 250 according to the indicative review released by FTSE Russell on 25 August 2026. The confirmation of index changes, guided by data as of Friday, 21 August, is pending and will be finalized after the market closes on 2 September 2026, following a formal review based on closing prices from 1 September 2026.
The indicative reshuffle also lists housebuilder Persimmon as a possible FTSE 100 deletion, while easyJet and Ithaca Energy are suggested as entrants. Under FTSE UK Index Series rules, an FTSE 100 constituent is removed if it falls below 110th place in terms of full market capitalization.
Market Performance and Factors Behind the Decline
On the morning of 27 August, Entain shares traded at 517p, a decrease of 2.3% for the day, placing the company’s valuation around £3.3 billion. This valuation falls short of the blue-chip threshold required for FTSE 100 membership.
The decline in share price comes in the wake of the UK remote gaming duty increase from 21% to 40%, effective from 1 April 2026. In its H1 2026 results, Entain reported a 5% rise in net gaming revenue in constant currency, but a 2% drop in underlying EBITDA as a result of the higher remote gaming duty.
Additional challenges include slower-than-anticipated US market growth and expectations for further fiscal tightening in the upcoming Autumn Budget. Morningstar’s Ollie Smith and Christian Mayes noted:
‘Entain, which faces high UK gambling taxes and slower-than-expected US growth, faces possible additional pressure at the Autumn Budget in October, where new chancellor John Healey may target gambling companies to shore up the UK government’s finances.‘
Analyst Sentiment Remains Optimistic
Despite the stock’s underperformance, sell-side analysts remain largely positive. All seven analysts monitored by MarketBeat currently rate the stock as a buy, with none assigning a hold or sell. The average twelve-month price target stands at 992p, ranging from 750p to 1,145p, representing a potential 92% increase from the current price of 517p.
However, these targets have declined over time; the consensus was at 1,013p a month prior and 1,170p a year earlier. On 17 August, there were two notable adjustments, with JPMorgan raising its target to 1,050p and Deutsche Bank reducing its target to 914p.
FTSE Index Changes – Timeline and Criteria
| Date/Event | Details |
|---|---|
| 21 August 2026 | Data used for indicative FTSE index changes |
| 25 August 2026 | FTSE Russell releases indicative FTSE 100 deletions and additions |
| 1 September 2026 | FTSE Russell conducts the formal review using market close data |
| 2 September 2026 | Confirmed rebalance results to be announced after market close |
Analyst Target Price Summary
| Analyst/Institution | Target Price | Comment/Timing |
|---|---|---|
| JPMorgan | 1,050p | Raised target on 17 August |
| Deutsche Bank | 914p | Reduced target on 17 August |
| MarketBeat consensus | 992p | Twelve-month average target |
- Author
Daniel Williams
