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Buy Rating for Rush Street Interactive Driven by iGaming Legislation Expansion and Product Differentiation

Buy Rating for Rush Street Interactive Driven by iGaming Legislation Expansion and Product Differentiation

Bernie McTernan, an analyst from Needham, maintained the Buy rating on Rush Street Interactive (RSIResearch Report). The associated price target remains the same with $17.00.

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Bernie McTernan has given his Buy rating due to a combination of factors that suggest potential growth for Rush Street Interactive. One of the primary reasons is the anticipated expansion of iGaming legislation, which could provide a significant boost to the company’s estimates if states adopt these measures to counteract reduced federal funding. Although the recent increase in online sports betting taxes is expected to have a minimal effect on RSI, the potential legislative changes in iGaming present a promising opportunity.
Another factor influencing the Buy rating is RSI’s focus on product differentiation, which is expected to enhance customer retention and increase the lifetime value of its customers. Additionally, the possible conclusion of the VAT in Colombia by the end of the year could lead to substantial growth for the company by 2026. These elements combined indicate a favorable outlook for RSI, justifying the Buy recommendation.

According to TipRanks, McTernan is a 4-star analyst with an average return of 3.7% and a 48.35% success rate. McTernan covers the Consumer Cyclical sector, focusing on stocks such as thredUP, Beyond Inc, and Flutter Entertainment PLC.

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