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Investing.com - Jefferies raised its price target on Rush Street Interactive (NYSE:RSI) to $18.00 from $17.00 on Wednesday, while maintaining a Buy rating on the online gaming company. The stock, currently trading at $14.92 with a market capitalization of $3.42 billion, has demonstrated strong momentum with a 70.87% return over the past year. According to InvestingPro analysis, the company maintains robust financial health with more cash than debt on its balance sheet.
The research firm made minor adjustments to its estimates, noting that tax impacts, foreign exchange movements, and strong iGaming results would likely offset each other.
Jefferies forecasts Rush Street Interactive’s second-quarter 2025 revenue at $253 million, full-year 2025 revenue at $1.07 billion, and fiscal year 2026 revenue at $1.24 billion. These projections exceed consensus estimates of $249 million, $1.05 billion, and $1.20 billion respectively.
For adjusted EBITDA, the firm projects $29 million for second-quarter 2025, $133 million for full-year 2025, and $172 million for fiscal year 2026, compared to Street expectations of $27 million, $128 million, and $171 million.
Jefferies increased its EV/Sales multiple for Rush Street Interactive to 3.5x from 3x, while maintaining its 30x EV/EBITDA and 35x P/E multiples, resulting in the higher price target.
In other recent news, Rush Street Interactive reported its Q1 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.09, exceeding the forecast of $0.07, and revenue of $262.4 million, above the projected $258.85 million. The company achieved a 21% year-over-year revenue increase, driven by a 25% rise in online casino operations and an 11% boost in sports betting. Benchmark has reiterated its Buy rating and $17.00 price target on Rush Street Interactive, highlighting the company’s strong iGaming engagement and platform performance, despite challenges such as Colombia’s temporary VAT on deposits. Meanwhile, JPMorgan initiated coverage on Rush Street Interactive with a neutral rating and a $14.00 price target, noting the company’s strong product capabilities but expressing concerns about its current valuation and slower revenue growth expectations compared to peers. In a bid to enhance the sports betting experience, Rush Street Interactive launched MLB PropPacks for BetRivers Sportsbook, allowing baseball fans to engage with games through digital player cards. Additionally, the company saw a 36% growth in iGaming revenue in April, reflecting robust expansion within the online gaming sector. These developments underscore Rush Street Interactive’s ongoing efforts to expand its market presence and enhance user engagement across its platforms.
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