Rush Street Interactive, Inc. (NYSE:RSI) just released its quarterly report and things are looking bullish. The company beat forecasts, with revenue of US$278m, some 3.7% above estimates, and statutory earnings per share (EPS) coming in at US$0.06, 57% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there’s been a strong change in the company’s prospects, or if it’s business as usual. With this in mind, we’ve gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Rush Street Interactive from eight analysts is for revenues of US$1.29b in 2026. If met, it would imply a huge 22% increase on its revenue over the past 12 months. Statutory earnings per share are expected to crater 67% to US$0.10 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$1.28b and earnings per share (EPS) of US$0.29 in 2026. So there’s definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.
Check out our latest analysis for Rush Street Interactive
It might be a surprise to learn that the consensus price target was broadly unchanged at US$22.14, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company’s valuation. The most optimistic Rush Street Interactive analyst has a price target of US$26.00 per share, while the most pessimistic values it at US$18.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It’s pretty clear that there is an expectation that Rush Street Interactive’s revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 17% growth on an annualised basis. This is compared to a historical growth rate of 24% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 10% per year. Even after the forecast slowdown in growth, it seems obvious that Rush Street Interactive is also expected to grow faster than the wider industry.
Read More: Rush Street Interactive, Inc. Just Beat Analyst Forecasts, And Analysts
