Last Updated: 13 Sep 2024
Executive Summary
Rush Street Interactive Inc. (RSI) is a leading online casino and sports betting company in the United States and Latin America. The company has a strong market position and is well-positioned to benefit from the growing online gambling market. RSI's financial performance has been improving in recent quarters, and the company is expected to continue to grow in the coming years. The stock is currently trading at $10.07, which is below the analyst target price of $13.03. RSI is a good long-term investment for investors who are looking for exposure to the online gambling market.
Company Overview
RSI was founded in 2012 and is headquartered in Chicago, Illinois. The company operates online casinos and sportsbooks in the United States, Canada, and Latin America. RSI's brands include BetRivers, RushBet, and SugarHouse. The company has a strong track record of innovation and has been a pioneer in the online gambling industry.
Fundamental Analysis
RSI's financial performance has been improving in recent quarters. In the first half of 2023, the company reported revenue of $801.5 million, up 88.8% year-over-year. Net income was $21.2 million, up from a loss of $10.5 million in the first half of 2022. RSI's EBITDA was $211.7 million in the first half of 2023, up from $105.4 million in the first half of 2022.
RSI's financial performance is expected to continue to improve in the coming years. The company is benefiting from the growing online gambling market and is well-positioned to take market share from its competitors. RSI is also expected to benefit from the legalization of sports betting in new states.
Technical Analysis
RSI's stock price has been in a downtrend since early 2023. The stock has been trading below its 50-day and 200-day moving averages. The stock is currently trading at $10.07, which is below the analyst target price of $13.03.
RSI's technical indicators are mixed. The stock's relative strength index (RSI) is below 50, which indicates that the stock is oversold. However, the stock's moving average convergence divergence (MACD) is above zero, which indicates that the stock is in a bullish trend.
Short Term Outlook
RSI's stock price is expected to remain volatile in the short term. The stock is trading below its 50-day and 200-day moving averages, which indicates that the stock is in a downtrend. However, the stock's RSI is below 50, which indicates that the stock is oversold. This suggests that the stock could be due for a bounce in the short term.
Long Term Outlook
RSI's long-term outlook is positive. The company is benefiting from the growing online gambling market and is well-positioned to take market share from its competitors. RSI is also expected to benefit from the legalization of sports betting in new states. The stock is currently trading at a discount to its analyst target price, which makes it a good long-term investment for investors who are looking for exposure to the online gambling market.
Analyst Recommendations
The majority of analysts have a buy rating on RSI. The average analyst target price is $13.03, which is 30% above the current stock price. Two analysts have a strong buy rating on RSI, five analysts have a buy rating, two analysts have a hold rating, and no analysts have a sell rating.
