Needham analyst Bernie McTernan has reiterated their bullish stance on RSI stock, giving a Buy rating yesterday.
Bernie McTernan has given his Buy rating due to a combination of factors including Rush Street Interactive’s strong first-quarter performance, where both revenue and adjusted EBITDA exceeded expectations. Despite this positive outcome, the management has maintained its guidance for the fiscal year 2025, which suggests potential conservatism in their projections.
McTernan highlights two specific upside risks that could further enhance the company’s financial outlook. Firstly, the current negative impact of the VAT in Colombia is assumed to persist in the model, but there is a possibility that this headwind might be alleviated, potentially improving revenue and EBITDA figures. Secondly, in the US market, a projected growth rate of 9% excluding Delaware might be conservative, as the overall market conditions could lead to higher growth rates, presenting an opportunity for upward revisions to estimates.
In another report released yesterday, Jefferies also reiterated a Buy rating on the stock with a $17.00 price target.