Genius Sports named 2023 Top Pick, added to Conviction List at Needham

Needham analyst Bernie McTernan names Genius Sports (GENI) his 2023 Top Pick and adds the stock to Needham Conviction List in place of Uber (UBER). The stock offers a reasonable valuation with significant exposure to the secular growth story of the U.S. sports betting industry, which he expects to be more resilient than other end markets in his coverage, the analyst tells investors in a research note. The company’s high fixed costs should also allow Genius Sports margins to scale as revenues grow and as FX headwinds abate, McTernan adds. The analyst also notes that Uber remains his "top large-cap pick" given its emerging revenue streams from advertising and grocery, and he believes that the stock’s valuation at 17.5-times expected 2023 EBITDA is "reasonable".