Deutsche Bank has downgraded Evoke PLC (LSE:EVOK) and Rank Group PLC (LSE:RNK) to 'hold' from 'buy', slashing price targets as it reassessed the European gaming sector ahead of 2026.
Evoke saw the sharpest cut. Deutsche reduced its target to 35p from 108p, citing a tougher operating outlook and the impact of higher UK gambling taxes. Rank was also downgraded, with its target lowered to 104p from 163p.
Elsewhere, the broker trimmed price targets across much of the sector but largely stuck with its recommendations. Entain remains a buy, though its target fell to 1,029p from 1,158p. Playtech also stays at buy, with its target cut to 390p from 433p.
Among the larger names, Flutter Entertainment is still rated buy, with targets reduced to 19,000p in London and $256 in New York. FDJ United also keeps a buy rating, with a marginal trim to its target price.
Richard Stuber at Deutsche said several themes from 2025 will continue to shape share prices next year.
These include the uncertain future of prediction markets, the impact of known UK tax rises on online gambling, and continued consolidation as larger groups gain scale.
Deutsche said it has refreshed its framework for picking winners and losers, putting greater weight on size, diversification, balance sheet strength and valuation.
The note also updates forecasts for companies most exposed to higher UK gambling taxes, a key pressure point for the sector as it heads into 2026.