Buy Rating Affirmed for Rush Street Interactive on Strong Growth and Market Expansion

Needham analyst Bernie McTernan maintained a Buy rating on Rush Street Interactive (RSI – Research Report) today and set a price target of $10.00.

Bernie McTernan has given his Buy rating due to a combination of factors that suggest strong potential for Rush Street Interactive’s future performance. Among these factors, the company is showing significant positive momentum, with expectations of accelerating revenue growth in the coming year. This optimism is rooted in RSI’s strong foothold in its core North American markets as well as its expansion into new territories like Delaware, which are anticipated to contribute to its revenue streams. Moreover, the company’s strategic focus on iGaming is considered a competitive edge, driving success in consumer engagement and backend product and technology enhancements.

Further influencing McTernan’s recommendation is RSI’s noticeable improvement in customer acquisition costs, which have decreased by a remarkable 50% year-over-year. This efficiency in acquiring new customers could translate into better profitability. The report also highlights the company’s growth prospects in Latin America, with market entries in countries such as Brazil and Peru potentially providing additional upside to financial forecasts. Given these developments, McTernan has increased his price target for RSI, indicating a stronger conviction in the company’s ability to meet or exceed performance estimates, which substantiates the Buy rating.

McTernan covers the Communication Services sector, focusing on stocks such as Shutterstock, Fiverr International, and Genius Sports Limited. According to TipRanks, McTernan has an average return of -4.4% and a 42.63% success rate on recommended stocks.

In another report released on May 2, Benchmark Co. also maintained a Buy rating on the stock with a $9.00 price target.

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Rush Street Interactive (RSI) Company Description:

Rush Street Interactive is an online gaming company. It offers online casino and sports betting under BetRivers.com and PlaySugarHouse.com brands in the U.S. and RushBet.co brand in Colombia.