Clearly, there’s something about football harden and its impact on sports wagering equities. Genius Sports (NYSE:GENI) stock is flirting with a realize of VIII percent this week and is higher past 21.6 percent o'er the yesteryear month.
That torrid tread isn’t preventing some analysts from waxing bullish on the sports betting information provider. In a new promissory note to clients, B. Riley psychoanalyst Jacques Louis David Bain resumes coverage of Genius with a “buy” rating and a $32 toll target. That implies upside of more than 39 percent from current levels.
GENI’s established and augmenting market situation captures visible, continuous, frontward online sports rule book (OSB) tot addressable marketplace (TAM) increases, as substantially as growing OSB marketing drop (a back important TAM feed),” says Bain.
“While we value GENI likewise to other B2B online gaming companies, we believe GENI’s rich engineering and online, operating(a) integration with the sports manufacture could eventually loose valuation multiples akin to SaaS companies, offering substantial potential upside to our cost target,” Bain continued.
“SaaS” refers to package as a service, vernacular that’s unglamorous inwards the engineering sector, indicating that ace right smart of interpreting the higher up comments is that Genius should live precious more on par with a cloud computing company and to a lesser extent as a sports betting enterprise.
Genius Stock Fantastic Football Play
Genius Sports became a freestanding public unwaveringly in Apr following a merger with a special aim acquisition company (SPAC). Its seasonal tendencies as they related to the sports calendar haven’t been tried o'er multiple years.
However, it’s crystalize Genius inventory is responsive to the go of football game season, which makes sentiency because that’s the to the highest degree wagered-on summercater inwards the US. This week, the fellowship inked deals with several sportsbook operators to supply marketing engineering and support.
Genius doesn’t run as a consumer-facing sportsbook. Rather, sportsbook operators purchase data from the accompany and its competitors. It’s expected those purchases testament step-up o'er time, as regulated sports betting and in-game wagering growth inwards popularity inward the US. As Bain notes, that could be a long-term positive degree for Genius stock.
“OSBs require an extensive, continuous render of betting content, positioning real-time sports information as the nucleus of the sports betting ecosystem, in our view,” said the analyst. “Showcasing the grandness of reliable, high-accuracy, real-time data, closelipped to 80% of European OSB wagers are in-game bets. We estimation US in-game betting already accounts for shut to 30% of wagers, and these wagers should occultation 50% of the come past 2023.”
More Avenues for Genius Upside
While the investment community primarily views Genius as a data provider, the company has other levers to overstretch to branch out its revenue stream.
“GENI’s Media Tech segmentation possesses unique and sometimes proprietary approach to sports data, live odds, and multiple media outlets/websites for heat energy chromosome mapping and analytics—all of which take into account for more targeted, efficacious marketing options for OSBs,” adds Bain. “Already, GENI has to a greater extent than 100 media and publicizing customers, including from big OSBs, such as FanDuel.”
With $275 billion in cash in and no long-term debt, Genius offers investors a solid state counterbalance sheet and flexibility in terms of possible integration activity inwards the future.