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On Friday, Benchmark analysts increased their price target on Rush Street Interactive (NYSE:RSI) shares to $14 from $12, while reiterating a Buy rating on the stock. The adjustment follows Rush Street’s announcement of a record-breaking quarter, with revenue surging 33.7% and reaching $924 million, surpassing both revenue and Adjusted EBITDA consensus estimates. According to InvestingPro, analyst targets now range from $12 to $17, suggesting further upside potential.
Rush Street Interactive has kicked off 2025 on a strong note, buoyed by a solid balance sheet with minimal debt and well-defined strategic priorities. InvestingPro analysis indicates the company’s strong financial health, with an Altman Z-Score of 13.29 suggesting robust financial stability. Despite potential regulatory challenges, particularly in the Colombian market, the company’s operational agility, in-house technology, and prudent capital management are expected to provide a buffer against possible obstacles.
The analysts highlighted Rush Street’s effective marketing strategies and the expansion of its iCasino operations as key drivers for future growth and valuation increases. These areas, along with the company’s adept handling of marketing costs, product innovation, and regulatory changes, are anticipated to be pivotal in determining whether Rush Street can meet or surpass its financial targets for the year.
The maintained Buy rating reflects the analysts’ optimism about Rush Street’s prospects, considering the company’s recent performance and strategic initiatives. As Rush Street continues to navigate the evolving regulatory landscape and capitalize on growth opportunities, its stock valuation could potentially see further upside.
In other recent news, Rush Street Interactive (RSI) reported its fourth-quarter 2024 earnings, surpassing Wall Street expectations with an earnings per share (EPS) of $0.07, compared to the projected $0.05. The company also reported a revenue of $254.2 million, exceeding the anticipated $243.83 million. This marks a 31% increase in revenue year-over-year, contributing to a full-year revenue of $924.1 million, up 34% from the previous year. RSI’s adjusted EBITDA for the quarter was $30.6 million, showing a 2.5 times increase from the prior year, while the full-year adjusted EBITDA reached $92.5 million, an 11-fold increase. The company ended the year with $229 million in unrestricted cash and no debt, highlighting its strong financial position. Looking forward, RSI has set a revenue guidance range of $1,010 million to $1,080 million for 2025, with a midpoint growth expectation of 13%. The company also forecasts an adjusted EBITDA of $115 million to $135 million, indicating a midpoint growth of 35%. Additionally, RSI’s CEO, Richard Schwartz, mentioned the company’s openness to potential mergers and acquisitions, emphasizing their strategic focus on expanding iCasino markets and enhancing their proprietary technology platform.
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