Rush Street Interactive is an online casino and sports betting service / Photo: shatterstock.com
Citizens Investment Bank has upgraded Rush Street Interactive to “market outperform” from “market perform,” setting a $24 per share target price on the online casino operator, which has a market capitalization of about $4.2 billion. Three other Wall Street analysts have raised their target prices after the company’s quarterly revenue reached a record and full-year revenue exceeded the management’s own forecast. “The continued stability of beating and raising expectations compared with peers drives our sustained bullish stance on the shares,” Jefferies said.
Details
On Wednesday, Citizens upgraded Rush Street Interactive to “market outperform” from “market perform” and set a $24 per share target price, implying about 32% upside versus the last close.
At least three other banks have raised their targets on Rush Street shares recently. Needham and Oppenheimer lifted their target prices to $25 per share, implying upside of almost 38%. Jefferies raised its target price to $30 per share, the most optimistic valuation on Wall Street and 65% higher than current quotes. All three banks also assigned bullish ratings (“buy” or “outperform”) to the stock.
The revisions followed Rush Street’s strong fourth-quarter and full-year results. Against this backdrop, its shares rose 7.3% to $18.20 apiece on Wednesday.
Rationale
Rush Street’s quarterly revenue rose 28% year over year to a record $324.9 million. Full-year revenue increased 23% to $1.13 billion, exceeding the management’s guidance, the company noted.
Jefferies expects continued revenue growth at a mid-high-teens rate, it said in a note cited by CNBC. “We expect the continued upward progression in revenues at mid-high-teens rate and reasonably solid flow-through of more than 1.5X,” analyst David Katz wrote. He described Rush Street as the “easy-to-own name in digital gaming.”
Katz noted that while his forecasts have generally been toward the higher end of the guided range, the company’s results have consistently delivered beats. Rush Street is targeting 2026 revenue growth of 21-26%.
