Genius Sports Could Be Hidden Gem Among Sports Betting Stocks
Shares of sports betting data provider Genius Sports (NYSE: GENI) are higher by nearly 57% year-to-date and on May 26, closed in(p) at the highest levels since February. A sell-side analyst believes the caudex has to a greater extent upside ahead.
In a recent tone to clients, Lake Street Capital markets analyst Eric Martinuzzi initiated reporting of Genius Sports with “buy” rating and a $7 terms target. That implies upside of 25% from the May 26 close. That’s slightly to a lower place the Wall Street consensus of $7.50, but Martinuzzi is at present 1 of 9 analysts covering Genius with a “buy” or “strong buy” rating. Another calls the gillyflower a “hold.”
The psychoanalyst described Genius as a “picks and shovels player” that markets live betting information and “other sticky services” to global sportsbook operators, including Bet365 and DraftKings (NASDAQ: DKNG), among others. Some analysts trust the stock up could benefit from bettors’ increasing taste for in-game or live wagers over pregame investments.
That thesis could further follow enhanced past same-game parlays — bets operators such as DraftKings and FanDuel are leveraging to substantial success.
Genius ‘Baby’ Thrown Out with ‘SPACwater’
London-based Genius Sports went in public inwards Apr 2021 following a black eye merger with special resolve acquisition society (SPAC) dMY Technology Group, Inc. II. The buy in caught some of the tail-end of investors’ enthusiasm for SPAC and sports betting stocks, but slumped in conclusion year as market place participants punished equities previously tied to blank-check companies.
At ane point in time in 2021, Genius traded compass north of $24 and Martinuzzi describes the subsequent topple experienced past the buy in as a case of the “Genius babe beingness thrown and twisted out with the SPACwater.”
Genius is on the leaflet of turn liberal immediate payment flow prescribed and is growing faster than its higher-valued peers,” wrote the Lake Capital analyst. “We also feel it has amend rights relationships — NFL, English language Premier League — and offers faster gain ontogeny than data licensing competitor Sportradar. We look to Genius showing first harmonic outperformance goaded past a decade-plus ontogenesis in U.S. sports betting as more states decriminalize online gambling.”
Genius hovering around profitability and generating liberal hard cash stream are noteworthy traits if for no other conclude than that they’re rarefied inwards the universe of sports betting equities.
Genius Sports Impressive Client Roster
Martinuzzi is right hand to cite Genius Sports’ client portfolio — a roster that includes non only if the side Premier League and the NFL, but the PGA Tour, Major League Baseball (MLB), the NCAA and Euroleague Basketball, among others.
In add-on to the NFL itself, which is also a major Genius shareholder, several of the league’s teams are Genius clients as are some of the biggest names inward sports broadcasting, including ESPN.
Beyond Bet365 and DraftKings, Genius’s other sprotsbook clients include 888 Sports, BetMGM and Caesars, according to the information provider’s website.
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