Rush Street Lifts 2021 Revenue Outlook After 4Q Beat; Stock Jumps Over 16%

Shares of Rush Street Interactive were up about 16.4% in Thursday’s pre-market session after the online casino and sports betting company raised its 2021 revenue outlook. Meanwhile, the company delivered higher-than-expected revenues in 4Q, while its loss per share fared better than the Street expected.

Rush Street Interactive (RSI) reported a 4Q loss of $0.01 per share, narrower than the Street’s expectations of a loss of $0.32 per share. The company reported an adjusted loss of $0.6 million versus the year-ago period’s loss of $15.1 million.

4Q revenues of $100 million soared 260% year-on-year and topped analysts’ expectations of $94.4 million. The company’s real-money monthly active users (MAUs) went up by 116% year-over-year in the U.S., with average revenue per MAU of $328 generated during the quarter.

The company raised its 2021 revenue outlook from $320 million to a range of $420-$460 million, the midpoint of which reflects 58% growth on a year-over-year basis. The company said, “This increase reflects our strong Q4 2020 results and anticipated growth in recently opened and existing markets resulting from increased marketing spend funded with cash on hand.” Analysts anticipate 2021 revenues of about $372 million. (See Rush Street Interactive stock analysis on TipRanks).

Following the results, Oppenheimer analyst Jed Kelly maintained a price target of $25 (51.1% upside potential) and a Buy rating on the stock. In a note to investors, the analyst said, “We see IL [Illinois] iGaming legislation becoming a key catalyst where we believe RSI would benefit from similar market share dynamics as BetMGM in MI [Michigan] given the Rivers’ strong brand affiliation with Chicagoland residents.”

Overall, the Street has a bullish outlook on the stock with a Strong Buy consensus rating based on 4 Buys and 1 Hold. The average analyst price target of $25.80 implies upside potential of about 56% to current levels. Shares are down by 23.1% since the company was listed on the NYSE on Dec. 30, 2020.

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on RSI, with 2.1% of investors increasing exposure to RSI stock over the past seven days.