Analyst Mike Hickey from Benchmark Co. reiterated a Buy rating on Rush Street Interactive and increased the price target to $24.00 from $20.00.
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Mike Hickey has given his Buy rating due to a combination of factors that highlight Rush Street Interactive’s strong performance and growth potential. The company is experiencing significant momentum in user growth and monetization, with monthly active user growth accelerating and average revenue per monthly active user reaching record levels. This indicates not only an expanding player base but also increased value generation per user. Additionally, RSI has demonstrated marketing efficiency by reducing marketing expenses to less than 14% of revenue while still achieving record numbers of first-time depositors, which enhances operating leverage.
Moreover, industry data supports robust demand for iGaming, with record or near-record results in key markets, reinforcing RSI’s positive trends. The company’s growth catalysts include expanding its user base in North America and Latin America, profitable sportsbook operations, and emerging high-engagement products like live poker. Looking ahead, potential catalysts such as the 2026 World Cup, new market launches, and further U.S. state legalization could drive further growth. RSI’s strong balance sheet, with $241 million in cash and no debt, provides financial flexibility to invest in new opportunities, supporting its long-term growth strategy.
Based on the recent corporate insider activity of 103 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.