Analysts are projecting the FTSE 100 could surge roughly 24% from current levels, potentially reaching around 13,378 within the next year.
The Economy Forecast Agency is behind the bullish projection, though forecasts of this magnitude naturally deserve a healthy dose of skepticism from investors.
For stock pickers, the real opportunity may lie in identifying individual names that could outperform even a broad market rally by a significant margin.
Barclays (LSE: BARC) stands out as one candidate, trading at just 7.1 times forward earnings despite delivering strong recent financial results.
Pre-tax profits at the banking group jumped 17% to £6.1bn over the first half of 2026, with return on tangible equity rising from 13.2% to 14.8%.
Management has raised its full-year expectations for 2026, targeting £31.5bn in total income alongside £2.3bn earmarked for dividends and share buybacks.
UBS has issued a 600p price target on Barclays, representing roughly 31% upside from where the stock currently trades.
Reaching that target is not guaranteed, however, as it depends on cost discipline, stable credit quality, and consistent investment banking performance holding up through any economic turbulence.
A sharp economic slowdown could trigger significantly higher borrower defaults and reduce demand for new loans, presenting real downside risk to the growth thesis.
The second stock drawing analyst attention is Entain (LSE: ENT), the gambling group behind brands including Ladbrokes, Coral, and bwin.
Entain shares have collapsed by around 45% since the start of the year, hit by concerns over taxes, regulation, mounting debt, and weak performance in markets like Brazil.
Despite those headwinds, first-half net gaming revenue rose 5% at constant currencies, driven by 7% online growth, while EBITDA reached £479m and beat expectations.
Management continues to target online net gaming revenue growth of between 5% and 7% this year, with margins expected to land between 21% and 22%.
The company is also pursuing £100m in annual cost savings by the end of 2027 and is aiming to push cash flows above £500m by 2028, though these remain ambitious targets.
Following the steep sell-off, the valuation has compressed so sharply that some analysts believe the stock could rebound by roughly 120% over the next 12 months if management can demonstrate meaningful delivery.
Entain is clearly the higher-risk proposition of the two, carrying more uncertainty around regulation and debt than the more established Barclays franchise.
For investors comfortable with volatility, however, the sharp valuation discount could make the potential reward worth the elevated risk profile.
Both stocks appear positioned to benefit from a broader FTSE 100 rally, provided their respective management teams can execute on stated financial targets in the year ahead.
