Rush Street Interactive surges after conference comments
Rush Street Interactive (NYSE: RSI ) was one of the best-performing gaming stocks on Tuesday. Executives from the online sports betting operator previously provided an upbeat update to the investment community at the Needham Growth Conference.
CEO Richard Schwartz and CFO Kyle Sauers attended the event. The Rush Street executive's comments pushed the stock higher, with the stock rising 12.63% in late trading Wednesday on volume that was more than double its daily average.
Executives updated attendees on the gaming company's momentum in the third quarter, which stretched into October and December. One catalyst for improved operator retention is the ability for bettors to bet on games efficiently. The operator's constructive comments on the lockdown period for the fourth quarter come as expectations suggest some rivals may have less lockdown periods than expected in the final three months of 2023.
Chicago-based Rush Street Interactive, which operates online and retail sportsbooks under the BetRivers and PlaySugarHouse brands, has previously noted that its Prop Central product provides bettors with more comprehensive and practical options for pregame use across a variety of sports. and live betting.
More Catalysts from Rush Street Interactive
Speaking at the Needham conference, Rush Street Interactive executives added that the company's recent debut as an iGaming partner for the Delaware Lottery is off to a good start and is expected to benefit from its presence in Latin America.
RSI operates under the BetRivers and PlaySugarHouse brands and is currently available for purchase mobile or retail in Colorado, Illinois, Indiana, Iowa, Michigan, New Jersey, New York, Pennsylvania, Virginia and West Virginia.
The gaming company also has operations in Colombia, Mexico and Peru. This could be beneficial as Brazil considers which sportsbooks should receive licenses there. Brazil has the largest economy in the region and is widely considered the “golden goose” of sports betting in Latin America.
The total population of Latin American countries subject to sports betting regulation is 365 million. The total addressable market for regional operators is estimated to be $3 billion or more.
Some Bullish Analysts Call RSI
Needham analyst Bernie McTernan maintains a Buy rating on Rush Street Interactive with a $6 price target, which implies 33% upside potential from current levels. The forecast is based on a 2025 enterprise value/earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) forecast of 10 times to 15 times this year's revenue forecast, or about 1.6 times.
McTernan added that the operator’s continued focus on iGaming provides some cushion against new entrants in the sports betting space such as ESPN Bet and Fanatics.
Nine analysts have ratings for Rush Street Interactive on the stock, with eight rating the stock a Strong Buy or Buy. The stock's consensus price target is $6.44.
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Source: www.casino.org
