Deutsche starts Genius Sports with Buy on ‘defensive characteristics’

Deutsche Bank analyst Steven Pizzella initiated coverage of Genius Sports (GENI) with a Buy rating and $12 price target The firm believes Genius gives investors “a playbook to navigate the potential macro uncertainty, through a business that is largely isolated from multiple potential regulatory and consumer related concerns.” About 60% of the company’s business is driven by a predictable fixed revenue stream, which will grow at a high teens rate annually over the next three years, driven primarily by built-in price escalators from recent contract renewals and global market expansion, the analyst tells investors in a research note. Deutsche says Genius Sports has “defensive characteristics” with limited downside risk to estimates relative to peers.