Like many internet casinos, Rush Street Interactive (NYSE: RSE) is struggling greatly. But Macquarie analyst Chad Beynon believes that RSE shares have the potential to more than double.
In a note to the client, Beynon projected RSE with a $21 price target in the next 12 months. That would be more than double its $10.04 2nd August closing.
Beynon argued that Rush Street Interactive shares are well-positioned to continue growing from its North America iGaming and online sports betting.
The analysts see the RSI technology stack as diversified player-focused. Beynon also believes that the gaming company marketing efforts and early casino lead are tools that will boost RSI growth.
RSI is among online gaming operators that merged with special purpose acquisition companies (SPACs) just like other SPACed companies, RSI stock is in anguish. RSI started trading on 31st December 2020. Since then, its shares are off by 53.63 percent.
RSI said that it expects to make a sale of $440 to $480 million this year. Though the company is struggling, Beynon is positive about the name.
“In an arms race industry, RSI remains focused on attracting profitable customers and maintain discipline around marketing.”
RSI operates online casinos in four states in the US. It also offers online casinos and regulated sports betting in Colombia.