Rush Street Interactive price target raised to $8 from $6 at Macquarie

Macquarie raised the firm’s price target on Rush Street Interactive to $8 from $6 and keeps an Outperform rating on the shares after the company reported a “strong” Q4 EBITDA beat, driven by an 8% revenue beat and flow-through margin of 102%, which the firm calls out as the company’s “highest yet.” The firm sees upside for Rush Street coming from Delaware, noting that at about one-tenth the size of New Jersey/Pennsylvania and with no competition, it views the state as a low-risk opportunity to significantly grow revenue and EBITDA with low-cost marketing. The firm raised 2024 and 2025 revenue estimates as it adjusts for current trends and guidance, the analyst added.