Benchmark Co. analyst Mike Hickey reiterated a Buy rating on Rush Street Interactive today and set a price target of $24.00.
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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. Despite recent stock volatility linked to prediction markets, RSI’s focus on iCasino and minimal exposure to the U.S. sports-betting market insulates it from such competition. The company’s fundamentals remain robust, with significant growth in net gaming revenue, particularly in Michigan, where RSI outperformed state averages.
Additionally, RSI has demonstrated marketing efficiency by reducing its marketing spend relative to revenue while maintaining high levels of first-time depositors, indicating strong operational leverage. The company’s international ventures, particularly in Colombia, present asymmetric upside potential, as the potential repeal of a VAT could significantly boost future EBITDA. Furthermore, favorable regulatory shifts in the U.S. could accelerate iGaming legalization, offering additional growth opportunities. These factors collectively support a Buy rating with a price target of $24.
Based on the recent corporate insider activity of 110 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RSI in relation to earlier this year.