Rush Street Interactive (RSI – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Mike Hickey from Benchmark Co. maintained a Buy rating on the stock and has a $17.00 price target.
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Mike Hickey has given his Buy rating due to a combination of factors including Rush Street Interactive’s strong performance in key markets and its strategic positioning for future growth. The company is expected to deliver solid results in the upcoming quarter, driven by robust iGaming engagement and consistent platform performance, particularly in Michigan, where it has shown significant growth in gross gaming revenue. Despite challenges such as Colombia’s temporary VAT on deposits, RSI’s financial outlook remains positive, with potential upside if the tax policy is resolved.
Furthermore, RSI’s expansion into new markets like Alberta and Delaware presents significant growth opportunities. Alberta’s market opening is anticipated to be a high-margin expansion, while Delaware’s early traction suggests substantial potential for increased annual gross gaming revenue. The company’s strong cash position and lack of debt further bolster its ability to capitalize on these opportunities, supporting the raised price target of $17 and the reiterated Buy rating.