Rush Street Interactive: Margin Expansion, Regulatory Upside, and Event-Driven Growth Support Buy Rating

Needham analyst Bernie McTernan has maintained their bullish stance on RSI stock, giving a Buy rating today.

Bernie McTernan has given his Buy rating due to a combination of factors tied to Rush Street Interactive’s growth and profitability outlook. Management signaled that by 2026 the company expects to further improve adjusted EBITDA margins, reflecting stronger operating leverage in the business. In addition, RSI anticipates a reduced drag from higher tax rates in Colombia, which should support net profitability, while the upcoming World Cup in Latin America is expected to attract more users and deepen engagement on the company’s platform. These dynamics collectively point to a more efficient and higher-earning business model over the medium term.
Another key element behind McTernan’s rating is the company’s potential regulatory and market upside. He is monitoring whether RSI will obtain one of the two remaining online casino licenses in Maine, which would expand its geographic footprint and revenue base. He also expects broader developments in online sports betting and iGaming legislation to be an important theme in 2026, creating additional opportunities for RSI to enter new markets or grow within existing ones. Taken together, the anticipated margin expansion, tax relief, event-driven user growth, and possible regulatory catalysts underpin McTernan’s positive stance and support his Buy recommendation on the stock.

In another report released today, TipRanks – Google also reiterated a Buy rating on the stock with a $21.50 price target.