Rush Street Interactive: Strong iCasino Positioning and Strategic Growth Initiatives Justify Buy Rating

Analyst Mike Hickey of Benchmark Co. reiterated a Buy rating on Rush Street Interactive (RSI – Research Report), retaining the price target of $14.00.

Mike Hickey has given his Buy rating due to a combination of factors that highlight Rush Street Interactive’s strong positioning in the iCasino market and its strategic growth initiatives. The company is expected to deliver a robust performance in the first quarter, driven by its iCasino-led portfolio, which accounts for a significant portion of its revenue. Despite potential challenges from the sportsbook segment, RSI’s diversified business model and scalable marketing strategy are expected to support margin expansion and create long-term shareholder value.
Additionally, RSI’s growth strategy is bolstered by its proprietary platform capabilities, which enhance user engagement and drive higher unit economics. The company’s presence in Colombia is also noteworthy, as it contributes significantly to revenue and AEBITDA. While the recent VAT imposed by the Colombian government poses a potential risk, a favorable court ruling could provide upside to financial projections. Overall, RSI’s solid market performance and strategic initiatives underpin the Buy rating, with a price target supported by strong fiscal 2025 AEBITDA estimates.

Hickey covers the Communication Services sector, focusing on stocks such as IMAX, National Cinemedia, and Cinemark Holdings. According to TipRanks, Hickey has an average return of 1.8% and a 58.35% success rate on recommended stocks.

In another report released on April 15, Susquehanna also reiterated a Buy rating on the stock with a $14.00 price target.