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Investing.com - JPMorgan initiated coverage on Rush Street Interactive (NYSE:RSI) with a neutral rating and a $14.00 price target on Monday. The company, currently valued at $1.32 billion, has demonstrated strong momentum with a 46.61% return over the past year.
The investment bank cited the company’s strong product capabilities and exposure to the North American iGaming market, where it holds approximately 9% market share. Despite these strengths and an overall "GREAT" financial health score according to InvestingPro, JPMorgan indicated that RSI’s current valuation appears full.
Rush Street Interactive is trading at 17.0x 2026 estimated EV/EBITDA, representing a premium of approximately 2x and 4x compared to competitors DraftKings (NASDAQ:DKNG) and Flutter, respectively, according to JPMorgan’s analysis.
The firm noted that RSI faces relatively slower revenue and EBITDA growth expectations compared to its peers. JPMorgan also pointed to slowing legislative momentum in the iGaming sector as a factor in its neutral stance.
Given these considerations, JPMorgan stated it sees "better risk/reward elsewhere" for investors looking at the online gaming sector.
In other recent news, Rush Street Interactive (RSI) reported strong financial performance for the first quarter of 2025, surpassing analyst expectations. The company achieved earnings per share (EPS) of $0.09, exceeding the forecast of $0.07, and reported revenue of $262.4 million, which was above the projected $258.85 million. This represents a 21% year-over-year increase in revenue, driven by a 25% rise in online casino operations and an 11% boost in sports betting. Additionally, RSI has launched MLB PropPacks, a new feature for BetRivers Sportsbook, designed to enhance the sports betting experience for baseball fans.
Meanwhile, Caesars (NASDAQ:CZR) Entertainment experienced a significant 45% increase in iGaming revenue in April, as highlighted by Citizens JMP. This growth underscores the dynamic nature of the online gaming market, where companies like Caesars and FanDuel are showing substantial revenue increases. FanDuel, in particular, expanded its market share, now standing 240 basis points above its closest competitor, DraftKings. The iGaming sector overall saw a 29% increase in revenue for April, indicating robust expansion within the industry.
Rush Street Interactive’s recent developments also include strategic growth in North American and Latin American markets. The company’s focus on innovation and user experience has positioned it favorably within the competitive online gaming market. As RSI continues to expand its offerings, it remains committed to enhancing player value and innovation across all major sports seasons.
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