With an enthusiastic Outperform rating, financial services major Macquarie has backed sports betting data company Genius Sports Limited. The move is part of the company's strategy to ride out the storm of NFL betting, which is gaining steam due to several variables, including new regulations, more people betting on sports, more emphasis on in-game wagering, higher margins, organic growth, and intelligent mergers and acquisitions.
The drivers leading to Genius Sports' potential development were detailed by Macquarie analyst Chad Beynon, who stressed the importance of Genius Sports as a critical contributor to sports fan engagement.
The importance of Genius Sports' player statistics and AI data and its ability to bring this data to life has led Beynon to predict that the company's share price will double in the next year or two.
The analysis projects that North America's online sports betting industry will have strong growth from 2019 to 2026, with a CAGR of 24% and a total gaming revenue of $22 billion. Macquarie predicts that Genius Sports will easily surpass this growth trajectory because of rising event usage, new product launches, and the rising popularity of in-game betting.
According to casino software reviews and news sites, the National Football League (NFL) promises a steady flow of money—an estimated $126 billion from advertising and TV deals—a significant boon to Genius Sports. According to Beynon, Genius Sports has emerged as the technological heart of the NFL's increasing wave after placing itself as a critical participant in the sports betting environment.
To put their optimistic prediction into numbers, Macquarie has set a price target of $11 for Genius Sports, an increase of 77.4 percent from the existing $6.20 closing price. A free cash flow yield of 4.7% and an EBITDA forecast for 2026 multiplied by 15X form the basis of this value.
The endorsement from Macquarie caused a 2.27 percent increase in premarket trading for Genesis Sports, which reached $6.30. The company's stock has climbed an astounding 73.67% this year, further establishing it as one of the top-performing sports wagering shares, and this good momentum follows on the heels of that.