Rush Street Interactive price target raised to $21 from $17 at Needham

Published 31/07/2025, 13:46
Rush Street Interactive price target raised to $21 from $17 at Needham

Investing.com - Needham raised its price target on Rush Street Interactive (NYSE:RSI) to $21.00 from $17.00 on Thursday, while maintaining a Buy rating on the stock. The company’s shares, which have surged over 60% in the past year and are trading near their 52-week high of $16.78, have shown remarkable momentum.

The price target increase follows Rush Street Interactive’s second-quarter results, which exceeded analyst estimates, and the company’s decision to raise its full-year 2025 guidance. According to InvestingPro data, the company maintains excellent financial health with a "GREAT" overall score, supported by strong revenue growth of nearly 30% and a solid balance sheet with more cash than debt.

Needham believes Rush Street Interactive will continue to trade at an elevated multiple compared to its peers, citing the company’s focus on iGaming as a key differentiator.

This iGaming focus gives Rush Street Interactive less exposure to industry concerns such as online sports betting taxes, structural hold issues, and threats from prediction markets, according to Needham.

The firm also noted potential upside risks to estimates in Colombia, where a value-added tax (VAT) might be repealed, and possible benefits from Rush Street Interactive’s investments in U.S. customer acquisition during the second half of the year.

In other recent news, Rush Street Interactive Inc. (RSI) reported its Q2 2025 earnings, significantly outperforming market expectations. The company posted an earnings per share (EPS) of $0.11, which was a notable 83.33% above the forecasted $0.06. Additionally, RSI’s revenue reached $269 million, surpassing the anticipated $249.65 million and marking a 7.83% surprise. These results reflect a strong financial performance for the quarter. Investors showed optimism following the announcement, as evidenced by the positive reaction in after-hours trading. The earnings beat highlights Rush Street Interactive’s ability to exceed analyst projections. These developments are part of the recent updates concerning the company’s financial standing.

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