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On Thursday, Benchmark analysts maintained a positive stance on Genius Sports Ltd. (NYSE: GENI), currently trading at $10.16, reiterating a Buy rating and a steady $12.00 price target. According to InvestingPro data, analyst targets range from $11 to $15, with a strong consensus recommendation of 1.36. The analysts highlighted the company’s expected performance for the first quarter of 2025, indicating that Genius Sports is likely to meet its previously provided guidance and may even achieve modest gains. With a healthy current ratio of 1.43 and trailing twelve-month revenue of $510.89 million, the company shows strong financial fundamentals.
Genius Sports had forecasted revenue of $143 million and AEBITDA of $19 million on March 4, indicating that the majority of the quarter’s financials were already secured before the end of the period. Current market consensus for the company’s revenue stands at $143.3 million with AEBITDA at $19.8 million, pointing to narrow market expectations.
The analysts underscored the structural visibility of Genius Sports’ revenue model, noting that 60-70% of its revenue is contractual, which reduces the company’s susceptibility to fluctuations caused by event-driven or market-based volatility. This was evident in the fourth quarter, where despite unfavorable NFL outcomes impacting sportsbook operators, Genius Sports managed to post significant revenue and AEBITDA growth, showcasing the resilience and reliability of their business model.
Looking forward, Benchmark analysts do not foresee any significant downside risk to Genius Sports’ first quarter earnings from the March Madness season. The company’s contracts with operators have historically shielded the business from the impact of volatile hold percentages or unexpected sports outcomes, resulting in a stable and predictable earnings profile for Genius Sports. The company’s strong momentum is reflected in its impressive 93.93% return over the past year and 18.15% year-to-date gain. For deeper insights into GENI’s valuation and growth prospects, check out the comprehensive Pro Research Report available on InvestingPro, which offers exclusive analysis and 12 additional ProTips.
In other recent news, Genius Sports Ltd. has attracted significant attention from multiple investment firms due to its financial performance and strategic positioning. Goldman Sachs recently increased its price target for Genius Sports to $12.50, maintaining a Buy rating, following a fourth-quarter earnings report that met expectations and guidance. The company’s revenue and adjusted EBITDA projections for fiscal year 2025 surpass Wall Street expectations, with a 21% revenue increase anticipated. Craig-Hallum also raised its price target to $15, citing Genius Sports’ pricing power and new product introductions as key growth drivers. Analyst Ryan Sigdahl highlighted the company’s unique B2B capabilities and advanced technology offerings, such as FANHub and BetVision.
Additionally, B.Riley resumed coverage with a Buy rating and a $12 target, emphasizing Genius Sports’ exclusive partnerships and extensive data collection network. The firm noted the company’s integration into over 650 sportsbooks with long-term contracts, providing stable future performance visibility. Guggenheim also initiated coverage with a Buy rating and a $12 price target, recognizing Genius Sports’ strong financial profile and strategic position in the expanding sports, media, and gaming industries. The firm’s analysts underscored the company’s ability to leverage its market position and capitalize on growth opportunities. These developments reflect broad confidence in Genius Sports’ potential for continued success in the evolving sports technology landscape.
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