Financial services giant Macquarie He has thrown his weight behind GENIUS SPORTS LIMITEDa sports betting data provider, is optimistic Excellent evaluation. The move comes as the company positions itself at the forefront of the growing wave of NFL betting, driven by factors such as regulatory changes, the widespread embrace of sports betting, a shift toward in-game betting, margin expansion, organic expansion, and strategy. Mergers and acquisitions.
Macquarie’s Chad Beynon expects Genius Sports shares to double in one to two years
Macquarie analyst Chad Beynon Outline the drivers that contribute to the potential growth of Genius Sports, emphasizing its role as a vital contributor to sports fan engagement. Pinon imagine a Double the company’s shares Over the next year or two, he attributes this growth to the importance of Genius Sports’ player statistics, artificial intelligence (AI) data, and its ability to bring this data to life.
The report predicts a strong growth trajectory For the North American online sports betting market, it has an estimated compound annual growth rate (CAGR) of 24% through 2026, peaking with total gaming revenue of $22 billion. Macquarie suggests so Genius Sports is in a good position to cross this growth curve, driven by increased use of events, the introduction of new products, and the growing popularity of in-game betting.
One noteworthy factor that works in Genius Sports’ favor is the secure revenue stream it ensures National Football League (NFL)It is expected to reach a large level $126 billion From its media and television deals. According to Beynon, Genius Sports now stands at the technological center of the NFL’s rising tide, positioning itself as a critical player in the sports betting landscape.
Genius Sports shares rose 2.27% after Macquarie set an ambitious price target of $11
To measure their bullish outlook, Macquarie set a price target of $11 on Genius Sports, representing a 77.4% upside from the current closing price of $6.20. This valuation is based on a 15X multiple of 2026 EBITDA estimates and a free cash flow yield of 4.7%.
In response to Macquarie’s endorsement, Genius Sports saw a 2.27% increase In pre-market trading, it reached $6.30. This positive momentum comes on the heels of a year that saw the company’s shares rise an impressive 73.67%, cementing its position as one of the best-performing sports betting stocks.
Last month, Genius Sports reported a huge sum 29.3% increase in third quarter revenuereaching $101.7 million, resulting in An upward revision of its full-year guidance.
With growth across all segments, including a notable 34.1% rise in the Betting Technology division, the company’s year-to-date revenues rose 21.3%, totaling $285.8 million, revising full-year guidance of approximately $412.0 million in Group revenue. and $53.0 million in group adjusted EBITDA.