![]() ![]() The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Rush Street Interactive's future valuation. Yet - earnings are more important to the intrinsic value of the business. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. So it's pretty clear that, while Rush Street Interactive's revenue growth is expected to slow, it's still expected to grow faster than the industry itself. ![]() By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% annually. This is compared to a historical growth rate of 48% over the past three years. It's pretty clear that there is an expectation that Rush Street Interactive's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 21% growth on an annualised basis. These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Rush Street Interactive's past performance and to peers in the same industry. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business. The most optimistic Rush Street Interactive analyst has a price target of US$14.00 per share, while the most pessimistic values it at US$7.00. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. The analysts have cut their price target 12% to US$9.80per share, suggesting that the declining revenue was a more crucial indicator than the forecast reduction in losses. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers fell somewhat. Before this latest report, the consensus had been expecting revenues of US$751.3m and US$0.26 per share in losses. ![]() The loss per share is expected to greatly reduce in the near future, narrowing 61% to US$0.24. Taking into account the latest results, the most recent consensus for Rush Street Interactive from ten analysts is for revenues of US$710.1m in 2023 which, if met, would be a substantial 27% increase on its sales over the past 12 months. ![]()
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