Deutsche Bank has revised downward the target prices for numerous European gaming firms while largely preserving its fundamental investment stances, as outlined in its 2026 sector outlook prepared by analyst Richard Stuber.
The firm projects that several key trends observed in 2025 will endure into 2026. These include the advancement of prediction market frameworks, the ramifications of anticipated UK online gambling tax changes, and the sustained consolidation of market share by larger operators through mergers and acquisitions.
In its updated evaluation approach, Deutsche Bank has re-examined criteria for distinguishing preferred and less favored stocks. This reconsideration prioritizes factors such as company scale, portfolio diversification, financial strength, and valuation levels. Additionally, the bank adjusted its earnings and valuation estimates for companies exposed to the impending UK gambling tax hike.
Regarding individual securities, Evoke Plc's recommendation was downgraded from "buy" to "hold," with its target price significantly reduced from 108p to 35p. Rank Group Plc also saw a downgrade to "hold" from "buy," accompanied by a target price adjustment down from 163p to 104p. Conversely, Entain Plc retained its "buy" rating, though the target price was trimmed from 1158p to 1029p. FDJ United remained a "buy" with a marginally lowered target price of €31.40 from €31.80.
Flutter Entertainment continues to garner a "buy" recommendation on both its London and U.S. listings. Its London-traded shares now have a target price of 19000p, down from 20200p, while the U.S. shares' target price was lowered from USD 273 to USD 256. Playtech Plc also maintained a "buy" rating with a revised target price dropping to 390p from 433p.
Stuber notes that the sector outlook remains clouded by persistent uncertainty around prediction markets, which he characterizes as unresolved both operationally and conceptually. Although the levels of UK online gambling taxes are now established, their actual impact on operator behavior and customer engagement remains unclear. The consolidation trend continues to be a defining feature, with dominant firms expanding their influence through strategic acquisitions.