Genius Sports Poised for Rapid Expansion Following Increase in NFL Betting Popularity

The large financial company Macquarie has shown its support for Genius Sports Limited, a data provider for sports betting, by giving it a positive Outperform rating. This decision is in line with the company’s efforts to lead the growing trend of NFL betting. This trend is being driven by various factors including changes in regulations, the increasing popularity of sports betting, a focus on in-game betting, and growth through mergers and acquisitions.

According to Chad Beynon from Macquarie, Genius Sports’ stock is expected to experience a 100% increase in value within the next one to two years.

Chad Beynon, an analyst at Macquarie, discussed the factors driving the potential expansion of Genius Sports. He highlighted its importance in engaging sports fans and predicts that the company’s shares will double within the next one to two years. Beynon attributes this growth to Genius Sports’ valuable player statistics, use of artificial intelligence (AI) data, and ability to present this data in a meaningful way.

The report forecasts a strong upward trend for the North American market of online sports betting, projecting a Compound Annual Growth Rate (CAGR) of 24% until 2026. This is expected to result in a gross gaming revenue of $22 billion. Macquarie believes that Genius Sports is in a favorable position to surpass this growth rate, thanks to greater utilization of events, the launch of new products, and the growing popularity of in-game betting.

One significant advantage for Genius Sports is the reliable source of income provided by the National Football League (NFL), expected to reach a significant $126 billion through its media and TV contracts. According to Beynon, Genius Sports has established itself as a key player in the sports betting industry, being at the forefront of the NFL’s growing influence.

After Macquarie set a $11 price target, the stock of Genius Sports rose by 2.27%.

Macquarie has established a price target of $11 for Genius Sports, projecting a 77.4% increase from the current closing price of $6.20 in order to demonstrate their optimistic perspective. This target is determined using a 15X multiple of the estimated 2026 EBITDA and a 4.7% free cash flow yield.

After receiving support from Macquarie, Genius Sports saw a 2.27% increase in premarket trading, reaching $6.30. This boost in performance comes after a successful year where the company’s stock has risen by 73.67%, solidifying its status as one of the leading sports betting stocks.

Genius Sports announced a significant rise of 29.3% in their Q3 earnings for last month, totaling $101.7 million. This resulted in an adjustment of their projected annual forecast.

The company has experienced growth in all sectors, with the betting technology division seeing a significant increase of 34.1%. This has led to a year-to-date revenue surge of 21.3%, reaching a total of $285.8 million. As a result, the company has adjusted its full-year guidance to approximately $412.0 million in group revenue and $53.0 million in group adjusted EBITDA.