Rush Street Interactive stock rating reiterated at Buy by Benchmark

Investing.com - Benchmark has reiterated its Buy rating and $17.00 price target on Rush Street Interactive (NYSE:RSI) ahead of the company’s second-quarter 2025 earnings report, scheduled for July 30. The stock, currently trading at $14.90, has shown strong momentum with a 57.5% return over the past year. According to InvestingPro analysis, RSI is currently trading in overbought territory with elevated valuation multiples.

The research firm anticipates Rush Street will deliver solid results reflecting strong iGaming engagement and consistent platform performance, despite ongoing pressure from Colombia’s temporary value-added tax (VAT) on deposits.

Michigan market data serves as a proxy demonstrating RSI’s strength, with elevated sports betting hold and healthy iGaming net gaming revenue growth indicating sustained user value and product appeal, according to Benchmark.

While Colombia continues to impact growth and margins negatively, the firm notes that any resolution to the tax policy could unlock meaningful upside for Rush Street Interactive in 2026.

Benchmark highlighted that Rush Street’s expansion into Delaware shows strong early traction with long-term growth potential, while Alberta represents a high-margin opportunity with market launch likely in the first half of 2026, all supported by the company’s cash-rich balance sheet, debt-free position, and differentiated iCasino-first strategy.

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. This marks a 21% year-over-year revenue increase, driven by strong growth in online casino and sports betting segments. The company also introduced MLB PropPacks through BetRivers Sportsbook, expanding its product line to enhance the sports betting experience for baseball fans. In terms of market performance, Citizens JMP highlighted a 36% revenue growth for Rush Street in the iGaming sector for April, alongside notable increases for competitors like Caesars (NASDAQ:CZR) Entertainment and FanDuel.

JPMorgan recently initiated coverage on Rush Street Interactive with a neutral rating, citing strong product capabilities but noting that the company’s current valuation appears full. They highlighted RSI’s slower revenue and EBITDA growth expectations compared to competitors, attributing their neutral stance to these factors and a slowing legislative momentum in the iGaming sector. In other developments, Rush Street Interactive expanded its user base in North American and Latin American markets, with significant growth in online casino operations. The company’s strategic focus on user experience and cross-sell capabilities has positioned it favorably within the competitive online gaming market.

Rush Street Interactive continues to prioritize innovation and user experience, with CEO Richard Schwartz emphasizing the company’s commitment to player value and innovation across major sports seasons. The company remains focused on expanding its market presence, particularly in Latin America, and enhancing its product offerings.

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