Stock Market logoStock Market Station

All the stock market news, every minute updated!

28 July 2021
18:44 hour

$RSI Rush Street Interactive and Why I'm Bullish - [Long DD]

Reddit Stock Market

22/07/2021 - 02:55

Rush Street Interactive Investment Summary: RSI went public on 30th December 2020 and has a year range 10.01-26.55. Based on current RSI stock price $10.31-$10.45, and the analysis of fair values, $RSI is a buy. About Rush Street Interactive Stock: Rush Street Interactive, Inc. (RSI) is an online casino and sports betting gaming company in the United States. RSI provides a range of offerings, including real-money online casino wagering, online and retail sports wagering, and social gaming. In 2018, RSI became the first U.S.-based online gaming operator to launch in Colombia, which was an early adopting Latin American country to legalise and regulate online casino and sports betting nationally. Their real-money online casino and online sports betting offerings are provided under BetRivers.com and PlaySugarHouse.com brands in the United States and under RushBet.co brand in Colombia. The Company operates real-money online casino and online sports wagering in New Jersey and Pennsylvania. It also operates online sports wagering in Indiana, Colorado and Illinois and provides retail sports wagering services in Illinois, Pennsylvania, New York, Indiana and Michigan. RSI operates and/or support retail sports betting for bricks-and-mortar casino partners primarily under their respective brands Impact of Covid-19: During the period of stay-at-home orders, RSI’s business volume significantly increased and has continued to remain strong as many of orders were lifted. COVID-19 has also directly impacted sports betting due to the rescheduling, reconfiguring, suspension, postponement and cancellation of major sports seasons and sporting events. The suspension and alteration of sports seasons and sporting events earlier in the year reduced customers’ use of, and spending on, sports betting offerings and caused RSI to issue refunds for canceled events. Additionally, while many bricks-and-mortar casinos where RSI operates retail sports betting have reopened, they generally continue to operate with reduced capacity. Ongoing or future closures of bricks-and-mortar casinos and certain ongoing limitations on visitations to such casinos due to COVID-19 may provide additional opportunities for RSI to market online casino and sports betting to traditional bricks-and-mortar casino patrons. Growth Strategies: Management of RSI is expecting multiple fold growth, primarily resulting from the following five prospects: Access new geographies Leveraging existing customer-level economics to increase marketing spending Continue to invest in our offerings and our platform Continue to invest in personnel Acquisitions Competitors: • Golden Nugget Online Gaming Inc(GNOG): Golden Nugget Online Gaming, Inc. operates as an online gaming and digital sports entertainment company. It offers patrons to play their favourite casino games and bet on live-action sports events in New Jersey and Michigan. • Everi Holdings Inc(EVRI): Everi Holdings Inc. provides entertainment and technology solutions for the casino and digital gaming industries in the United States, Canada, the United Kingdom, Europe, the Caribbean, Central America, and Asia. • International Game Technology(IGT): International Game Technology PLC operates and provides gaming technology products and services worldwide. It operates in two segments, Global Lottery and Global Gaming. • Boyd Gaming Corp.(BYD): Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company. It operates through three segments: Las Vegas Locals, Downtown Las Vegas, and Midwest & South. • Scientific Games Corporation(SGMS): Scientific Games Corporation develops technology-based products and services, and related content for the gaming, lottery, social and digital gaming industries in the United States and internationally. Fair Value of RSI StockComps Analysis: P/E and EV/EBITDA RSI had negative EBITDA and Earnings for 2019 and 2020, so comps analysis on standard P/E and EV/EBITDA will not be insightful. P/S Peer analysis with comparable companies based on P/S multiple suggests that RSI stock has a higher probability of being undervalued. RSI’s fair value by P/S analysis ranges from $6.8 to $16.89, averaging at $11.85. EV/Sales By comparing RSI’s EV/Sales multiple to that of competitors, Rush Street Interactive fair value ranges for the RSI stock price from $22.2 to $30.55. DCF Analysis: Owing to the growth prospects listed above and by going through various online resources, following assumptions can be made about RSI: Assumptions: Revenue Growth Rate: Revenue growth rate is expected to be high initially owing to expansion and change in consumer behaviour and it would gradually stabilise over 10 years. Thus revenue is assumed to grow from 60% initially to 3% in the year 2030. With perpetual growth rate at 1.5%. COGS: Cost of revenue is set at 60% - taken as the average of percentage COGS/Revenue from 2018-2020. Operating Efficiency Increase: In year 2020, operating expenses were 148% of revenues, but this is neither sustainable not static. The high OpEx resulted from establishing strategic partnerships with firms and are not recurring costs. Here, the assumption is that after one-time partnership costs incurred during expansion and attaining the learning from experience, RSI would be able to reduced its operating expenses from 124% to 60% gradually(8% YoY). WACC: WACC of RSI is set to 7.37%- from GuruFocus. However based on industry average beta calculation, the calculated WACC is 7.15%. Taking into consideration the average growth rate of RSI over past years and industry average of public companies, following assumptions have been made for Asset growth rate and Liability Growth Rate for upto year 2030. Asset Growth Rate: 10% Liability Growth Rate: 11% PPE Growth Rate: 7% D/A Growth Rate: 29% Fair Value: Based on above assumptions the fair value of RSI stock is $19.19. The sensitivity analysis of variation in assumptions can be checked in attachments below. RSI Stock Analysis Summary In summary we can say that based on the above assumptions, RSI stocks are undervalued. Below is the summarized price range of RSI stock based on various analyses, which can also be represented in football field (image attached below). https://preview.redd.it/a4z0tn0rwnc71.png?width=647&format=png&auto=webp&s=ecd2a67ca5bb3f50d81dce06b7124870a42fac82 Sources: Utradea Sec Report https://www.investing.com/equities/dmy-technology-group-news https://www.marketbeat.com/stocks/NYSE/RSI   submitted by   /u/utradea [link]   [comments]


READ THE FULL ARTICLE ON REDDIT STOCK MARKET

Related headlines:

  1. Rush Street Interactive beats on revenue (10/03/2021 - Seeking Alpha)

    [visit article]
  2. Rush Street Interactive inks deal with Chicago Bears (22/06/2021 - Seeking Alpha)

    [visit article]
  3. Rush Street Interactive expected to see second-half revenue boost (22/03/2021 - Seeking Alpha)

    [visit article]
  4. Rush Street Interactive rallies after Jefferies points to tech advantage (16/04/2021 - Seeking Alpha)

    [visit article]
  5. Rush Street Interactive hikes guidance with new markets powering revenue (14/05/2021 - Seeking Alpha)

    [visit article]
  6. Rush Street Interactive tracks higher after Needham points to iGaming edge (27/04/2021 - Seeking Alpha)

    [visit article]
  7. Rush street interactive joins Russell 2000 and Russell 3000 indexes (29/06/2021 - Seeking Alpha)

    [visit article]
  8. IPO rush on Wall Street: Uber’s former Chinese rival and Johnson & Johnson-backed co to list next (25/06/2021 - Financial Express)
    The IPO rush on Wall Street has been going strong so far in 2021 and has no intentions of slowing down.
    [visit article]
  9. Green rush question.. (04/06/2021 - Reddit Stocks)
    What's everyone's opinions on $GRWG, $CURLF, $HYFM, $GTBIF?? Newbie ape here, especially with investing, looking for good long term companies to invest heavily in and to hold for the next 5y. GRWG, HYFM, and Green Thumb are all leading the way for manufacturing hydroponics supplies, a long with nutrients and all the good stuff to grow dank nug. Many people during the gold rush who made a lot of money were merchants selling the supplies. to mine the gold.... I have the feeling about these two US companies with the "green" rush. thank you   submitted by   /u/lonelybaloney_stoney [link]   [comments]
    [visit article]
  10. The Ratings Game: Peloton stock slumps after long-time bull says it ‘makes sense’ to stop buying (14/07/2021 - Market Watch)
    Shares of Peloton Interactive Inc. were set up for a selloff Wednesday, after Wedbush analyst James Hardiman backed away from his long-time bullish stance, citing uncertainty over the at-home-fitness company's ability to navigate a more competitive post-pandemic world.
    [visit article]
  11. Rush Street soars after strong Q4, New York update (11/03/2021 - Seeking Alpha)

    [visit article]
  12. Moving to Interactive Brokers (13/06/2021 - Reddit Stocks)
    Hi, I am planning to move from TD Ameritrade to Interactive Brokers. I love Think n swim platform and I have good customer experience with TD. My purpose of moving is that I get a better margin rate at Interactive. Can you guys provide your thoughts on this move? Thise of you who are on Interactive, can you please share your experience? Thanks Rusty   submitted by   /u/rusty_dallas [link]   [comments]
    [visit article]
  13. DraftKings, Rush Street higher after New York sports betting approval (07/04/2021 - Seeking Alpha)

    [visit article]
  14. Century Casinos sets up online casino platforms for Rush Street and William Hill (14/04/2021 - Seeking Alpha)

    [visit article]
  15. The Ratings Game: Driven Brands stock gets bullish endorsement from Wall Street (09/02/2021 - Market Watch)
    Shares of Driven Brands Holdings Inc. rallied toward a fifth-straight gain Tuesday, after the newly public auto services company got a mostly bullish endorsement from Wall Street analysts, as a way to play the recovery in the auto industry.
    [visit article]
  16. The Wall Street Journal: Afternoons are the new rush hour in the suburbs (17/05/2021 - Market Watch)
    The pandemic continues to scramble driving patterns throughout the U.S.
    [visit article]
  17. $TTCF Tattooed Chef - Why I am Bullish (07/06/2021 - Reddit Stocks)
    I am a bullish long term investor in Tattooed Chef. They are a growing vegan food company that is already profitable. Their products are sold in Whole Foods, and just recently got into Target. The company has solid financial position. Short interest is high, meaning a short squeeze could drive this stock price significantly higher. If Wall Street bets gets a hold of this one… lookout. Solid company, growing sales abs market share. Low debt. I’m bullish and adding shares of $TTCF. What are your thoughts?   submitted by   /u/HigherLows83 [link]   [comments]
    [visit article]
  18. i3 Interactive changes its name to Interactive Games Technologies (02/03/2021 - Seeking Alpha)

    [visit article]
  19. Valuations of shipping stocks still inexpensive; Jefferies bullish on these Wall Street shares (28/04/2021 - Financial Express)
    Among tanker companies listed on Wall Street, Jefferies has a ‘buy’ rating on six and a ‘hold’ rating on two. 
    [visit article]
  20. Infographic: Highlights of Take-Two Interactive (TTWO) Q3 2021 earnings report (08/02/2021 - AlphaStreet)
    Gaming company Take-Two Interactive Software, Inc. (NASDAQ: TTWO) announced its third-quarter results Monday after the closing bell, reporting earnings and revenues that exceeded expectations. Third-quarter revenues dropped to $860.9 million from $930.1 million in the corresponding period of 2020 but came in above Wall Street’s projection. However, net income increased to $182.2 million or $1.57 per share in the third quarter from $163.6 million or $1.43 per share a year earlier, aided by a decline in costs. Analysts had predicted a weaker bottom-line performance. Read management/analysts’ comments on Take-Two’s Q3 results The company’s stock closed Monday’s regular trading higher but reversed the trend during the extended session. (this story will be updated shortly)The post Infographic: Highlights of Take-Two Interactive (TTWO) Q3 2021 earnings report first appeared on AlphaStreet.
    [visit article]
  21. Peloton Interactive long vs. short battle heats up (30/06/2021 - Seeking Alpha)

    [visit article]
  22. Take-Two Interactive (TTWO) Q4 earnings rise, beat view; revenue up 10% (18/05/2021 - AlphaStreet)
    Gaming company Take-Two Interactive Software, Inc. (NASDAQ: TTWO) announced fourth-quarter results Tuesday after the closing bell, reporting earnings and revenues that exceeded expectations. Fourth-quarter revenues rose to $839.4 million from $760.5 million in the corresponding period of 2020, defying Wall Street’s expectations for a decline. Consequently, net income increased to $218.8 million or $1.88 per share in the March quarter from $122.2 million or $1.07per share a year earlier. Analysts had predicted a weaker bottom-line performance. Read management/analysts’ comments on Take-Two’s Q4 results The company’s stock closed Tuesday’s regular trading lower and continued to lose during the extended session soon after the earnings announcement. It has gained 21% so far this year. (this story will be updated shortly)The post Take-Two Interactive (TTWO) Q4 earnings rise, beat view; revenue up 10% first appeared on AlphaStreet.
    [visit article]
  23. Peloton’s revenue soars 141% in Q1 (06/05/2021 - AlphaStreet)
    Peloton Interactive (NASDAQ: PTON) reported third-quarter 2021 financial results after the regular market hours on Thursday. The maker of exercise equipment reported Q3 revenue of $1.26 billion, up 141% year-over-year and above the Wall Street projection. Meanwhile, net loss of $0.03 per share was 9 cents narrower than what analysts had anticipated (-0.12). PTON shares jumped 1.3% immediately following the announcement. The stock has declined 43% since the beginning of this year. (The story will be updated with an AlphaGraphic) Looking forward to listening to management / analyst comments on the results? Stay tuned here for Peloton Interactive Q3 earnings call transcript Prior performance The post Peloton’s revenue soars 141% in Q1 first appeared on AlphaStreet.
    [visit article]
  24. Peloton Interactive backed by Argus as long-term growth story (21/05/2021 - Seeking Alpha)

    [visit article]
  25. The Ratings Game: Coinbase stock bounces after bullish calls from Wall Street analysts (20/05/2021 - Market Watch)
    Shares of Coinbase Global Inc. bounced Thursday, putting it on track to snap a six-day losing streak, after a bullish call from Wedbush analyst Moshe Katri, who said the cryptocurrency trading platform's business model is "more resilient" than perceived.
    [visit article]
  26. Bullish sentiment for Biogen continues among Wall Street analysts (14/06/2021 - Seeking Alpha)

    [visit article]
  27. Panchtantra for kids: Start-up launches voice-tech enabled Panchantra series on Covid-19 preparedness for kids (20/06/2021 - Financial Express)
    HiVoco is a two-way audio interactive platform where teachers and story-tellers provide interactive content and quizzes to children of 4-10 years of age.
    [visit article]
  28. Rolls Royce (RYCEY) (29/06/2021 - Reddit Stocks)
    I have 1000 shares. Plan is to hold long term while the airline industry bounces back, I’m in no rush. What are your thoughts though? Should I sell and free up that 1400 dollars to invest elsewhere (taking about a 500 dollar loss) or just sit tight and hold for long? What would you do?   submitted by   /u/Kbum1003 [link]   [comments]
    [visit article]
  29. Alpha Teknova set to end losing streak amid bullish calls from Wall Street (20/07/2021 - Seeking Alpha)

    [visit article]
  30. Zynga stock climbs on bullish BMO start with Street-high price target (19/04/2021 - Seeking Alpha)

    [visit article]
  31. Interactive Brokers Group Inc. (IBKR) Q2 2021 Earnings Call Transcript (21/07/2021 - AlphaStreet)
    Interactive Brokers Group Inc. (NASDAQ: IBKR) Q2 2021 earnings call dated Jul. 20, 2021 Presentation: Operator Good day and thank you for standing by. Welcome to the Interactive Brokers Group Second Quarter Financial Results Conference call. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions] I would now like to hand the conference over to Nancy Stuebe, Director of Investor Relations. Please go ahead. This content is for members only. Visit the site and log in/register to read.The post Interactive Brokers Group Inc. (IBKR) Q2 2021 Earnings Call Transcript first appeared on AlphaStreet.
    [visit article]
  32. Coinbase set to list on NASDAQ tomorrow; first Bitcoin trading platform to enter stock markets (13/04/2021 - Financial Express)
    The Cryptocurrency gold rush is all set to enter Wall Street as soon as tomorrow, with Coinbase slated for its stock market debut.
    [visit article]
  33. Key Words: Interactive Brokers founder says problem with AMC Entertainment memes: ‘People…will lose a very substantial amount of money’ (04/06/2021 - Market Watch)
    When the music stops for the meme stocks, investors could be looking at big losses, warns Thomas Peterffy, founder and chairman of Interactive Brokers Group Inc.
    [visit article]
  34. Key Words: Interactive Brokers founder says problem with AMC Entertainment memes: ‘People…will lose a very substantial amount of money’ (04/06/2021 - Market Watch)
    When the music stops for the meme stocks, investors could be looking at big losses, warns Thomas Peterffy, founder and chairman of Interactive Brokers Group Inc.
    [visit article]
  35. NewsWatch: Interactive Brokers founder says problem with AMC Entertainment memes: ‘People…will lose a very substantial amount of money’ (04/06/2021 - Market Watch)
    When the music stops for the meme stocks, investors could be looking at big losses, warns Thomas Peterffy, founder and chairman of Interactive Brokers Group Inc.
    [visit article]
  36. Lamb Weston gains after Jefferies turns bullish, assigns Street-high price target (08/06/2021 - Seeking Alpha)

    [visit article]
  37. The Ratings Game: Buy Coinbase stock, as crypto has reached an ‘inflection point to legitimacy,’ analyst says (21/04/2021 - Market Watch)
    Coinbase Global Inc. received yet another bullish endorsement from a Wall Street analyst on Wednesday, with Rosenblatt Securities analyst Sean Horgan expects the cryptocurrency exchange stands to be a "long-term category leader."
    [visit article]
  38. Interactive Brokers to offer crypto trading by the end of summer (09/06/2021 - Reddit Stock Market)
    https://finance.yahoo.com/news/interactive-brokers-offer-crypto-trading-143902588.html Wed, June 9, 2021, 10:39 AM IBKR+1.34% NEW YORK (Reuters) - Interactive Brokers Group Inc plans to begin offering cryptocurrency trading through its brokerage within a few months, the company's chairman said on Wednesday. "Customers are asking for it and we expect to be ready to offer it to them by the end of the summer," Interactive Brokers founder and chairman Thomas Peterffy said at a conference held by Piper Sandler. Peterffy did not say which cryptocurrencies would be available to trade, but the New York-based brokerage began offering bitcoin futures in December 2017. The biggest hurdle to offering crypto-trading has been ensuring Interactive Brokers can keep its customers' digital coins safe, Peterffy added. "Think about it, how do you make it 100% sure that no one will steal their coins in spite of the fact that they are untraceable," he said. (Reporting by John McCrank; Editing by Chizu Nomiyama)   submitted by   /u/SavannahSmiles_ [link]   [comments]
    [visit article]
  39. Take-Two Interactive Software, Inc. (TTWO) Q4 2021 Earnings Call Transcript (19/05/2021 - AlphaStreet)
    Take-Two Interactive Software, Inc. (NASDAQ: TTWO) Q4 2021 earnings call dated May. 18, 2021 Presentation: Operator Greetings and welcome to the Take-Two Fourth Quarter Fiscal Year 2021 Earnings Call. [Operator… This content is for members only. Visit the site and log in/register to read.The post Take-Two Interactive Software, Inc. (TTWO) Q4 2021 Earnings Call Transcript first appeared on AlphaStreet.
    [visit article]
  40. Interactive S&P 500 valuation by Aswath Damodaran (30/03/2021 - Reddit Stocks)
    The following is an interactive S&P 500 valuation by Aswath Damodaran based on his most recent blog post. Users can set risk free rate, speed of change, ERP methods and various other levers to calculate intrinsic value of the index. https://tactyc.io/published/3756   submitted by   /u/anubhav100 [link]   [comments]
    [visit article]
  41. Interactive Brokers (09/06/2021 - Reddit Stocks)
    Has anyone else experienced issues with IB filling orders on LSE stocks? I have 3 x brokers at the moment: Hargreaves Lansdown - For very long term funds / IT's and my ISA (a good tactic having a separate broker for lifetime investing so you don't look at the position every. single. day.) IG - General share dealing/investments and ETF's Interactive Brokers - I opened this account primarily to dabble with options and smaller cap US stocks, however it turns out I qualify as a professional (who knew!?) and can trade on margin, so I want to do a bit more through IB. However, when I place limit orders, they just sit there for hours. For instance, on IB I placed an order for 5000 @ 22.5 (pence) and its been sitting there for an hour. None filled. On IB, I enter 5000 and "quote" and am immediately offered 22.05. What am I missing here?   submitted by   /u/ttrsphil [link]   [comments]
    [visit article]
  42. NewsWatch: April has been bullish for stocks but you shouldn’t bet on a repeat this year (28/03/2021 - Market Watch)
    Wall Street's calendar trading patterns aren't worth planning your days around.
    [visit article]
  43. NewsWatch: April has been bullish for stocks but you shouldn’t bet on a repeat this year (28/03/2021 - Market Watch)
    Wall Street's calendar trading patterns aren't worth planning your days around.
    [visit article]
  44. NewsWatch: April has been bullish for stocks but you shouldn’t bet on a repeat this year (27/03/2021 - Market Watch)
    Wall Street's calendar trading patterns aren't worth planning your days around.
    [visit article]
  45. NewsWatch: April has been bullish for stocks but you shouldn’t bet on a repeat this year (27/03/2021 - Market Watch)
    Wall Street's calendar trading patterns aren't worth planning your days around.
    [visit article]
  46. Need to Know: Why the S&P 500 is now overbought and looks ready to drop in the short term, according to this strategist (08/04/2021 - Market Watch)
    The S&P 500 eked out yet another record close on Wednesday, as the Federal Reserve reassured investors that it is in no rush to tighten fiscal policy — and some of that momentum is set to continue into Thursday. But it may not last for long.
    [visit article]
  47. Earnings Results: Take-Two earnings, outlook top Wall Street estimates on strong holiday quarter (08/02/2021 - Market Watch)
    Take-Two Interactive Software Inc. reported a better-than-expected outlook and results in the extended session Monday as sales gained a holiday boost during the COVID-19 pandemic but shares of the videogame publisher slipped after hours.
    [visit article]
  48. Mark Hulbert: April has been bullish for stocks but you shouldn’t bet on a repeat this year (26/03/2021 - Market Watch)
    Wall Street's calendar trading patterns aren't worth planning your days around.
    [visit article]
  49. NewsWatch: Why the S&P 500 is now overbought and looks ready to drop in the short term, according to this strategist (08/04/2021 - Market Watch)
    The S&P 500 eked out yet another record close on Wednesday, as the Federal Reserve reassured investors that it is in no rush to tighten fiscal policy — and some of that momentum is set to continue into Thursday. But it may not last for long.
    [visit article]

For more information mailto [email protected]. Disclaimer.