In a report released today, Mike Hickey from Benchmark Co. reiterated a Buy rating on Rush Street Interactive (RSI – Research Report), with a 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 market position and growth potential. The company delivered a robust performance in the first quarter, surpassing revenue expectations and demonstrating significant growth in AEBITDA, which reflects its efficient operational model and strategic focus on high-margin casino offerings. The reaffirmation of the full-year guidance further instills confidence in RSI’s ability to execute its business strategy effectively.
Moreover, RSI’s geographic diversification, particularly its expansion in Latin America, positions it well for future growth, despite temporary challenges such as the deposit tax in Colombia. The company’s resilience is further supported by its strong retention rates and high player lifetime value, especially in the U.S. and Ontario markets. Additionally, the potential for regulatory expansion in U.S. iGaming presents a favorable environment for RSI to capitalize on its market leverage. These factors collectively justify the Buy rating, with a price target reflecting anticipated growth and market opportunities.
In another report released today, Needham also reiterated a Buy rating on the stock with a $17.00 price target.