Rush Street Interactive (RSI) Earns Analyst Upgrade After Raised Earnings Estimates—What Does it Mean for Investors?

• Earlier this week, Rush Street Interactive received an upgrade to a Zacks Rank #1 (Strong Buy) after analysts raised their earnings estimates for the company.
• This improved analyst sentiment suggests confidence in the company's business outlook, underpinned by stronger fundamentals and an enhanced earnings trajectory.
• We'll explore how this analyst upgrade amid raised earnings forecasts may influence Rush Street Interactive's investment outlook.

These 13 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.

Rush Street Interactive Investment Narrative Recap

To be a shareholder in Rush Street Interactive, you need to believe in the continued digitalization of gambling, RSI's ability to capture new users across its core markets, and the overall trend toward legalization of online gaming. The recent Zacks Rank #1 (Strong Buy) upgrade, based on raised earnings estimates, adds positive momentum to the main near-term catalyst, sustained user and revenue growth, but does not eliminate the risk of rising competition and associated marketing costs potentially limiting profit margins.

Among recent announcements, the July 2025 revenue guidance revision is directly relevant, with RSI now expecting US$1,050 million to US$1,100 million in 2025 revenue, signaling confidence in its expanding customer base and operational efficiency. This improved outlook sits squarely at the heart of analysts' optimism, but it remains contingent on keeping user acquisition and retention costs under control as competition intensifies.

However, with stronger analyst sentiment, it's just as important for investors to be aware of how rising marketing expenditures could quickly shift the margin picture if...

Read the full narrative on Rush Street Interactive (it's free!)

Rush Street Interactive's narrative projects $1.5 billion in revenue and $44.7 million in earnings by 2028. This requires 13.2% yearly revenue growth and a $19.5 million increase in earnings from the current $25.2 million.

Uncover how Rush Street Interactive's forecasts yield a $20.25 fair value, a 7% downside to its current price.

Exploring Other Perspectives

Fair value estimates from the Simply Wall St Community range from US$20.25 to US$22.77 across two opinions, highlighting significant diversity in expectations. While bullish revenue forecasts underpin many views, the growing costs of acquiring and retaining players stand out as a critical factor shaping RSI's profitability potential, explore these differing viewpoints to gain a fuller picture.

Explore 2 other fair value estimates on Rush Street Interactive - why the stock might be worth as much as $22.77!

Build Your Own Rush Street Interactive Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Rush Street Interactive research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Rush Street Interactive research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Rush Street Interactive's overall financial health at a glance.

No Opportunity In Rush Street Interactive?

Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay:

• We've found 19 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
• AI is about to change healthcare. These 27 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.
• Uncover the next big thing with financially sound penny stocks that balance risk and reward.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com