JMP Securities Reiterates Market Outperform Rating on Genius Sports Ltd. (GENI)

JMP Securities analyst Jordan Bender reiterated a Market Outperform rating and $11.00 price target on Genius Sports Ltd. (NYSE: GENI).

The analyst commented, "Our discussion mainly revolved around the recent equity raise on 1/15. We get the sense the company was taking the certainty with shares trading in line with the 30-day moving average, 14% off the 52-week high, and results for the quarter coming in better than buyside expectations. Additionally, January is seeing a strong start for game outcomes in the NFL, a positive for 1Q25 results. The general feedback from investors over the last two weeks was mixed following the announcement as the company raised capital absent of any M&A-related activity, thus minorly diluting shareholders."

Furthermore, "That said, we walk away feeling increasingly confident about the strategic action to put more cash on the balance sheet and the direction of the business. M&A opportunities come across the desk of all companies in the space on a constant basis, yet we do not get the sense anything is imminent at this time with management positioning itself to move quickly if a target is identified. We point out that cash should build throughout 2025 ($135M ending 2024E), yet the seasonality of the business (NFL season) results in FCF lower in 1H25 compared to 2H25; we model $2M in 1H and $51M in 2H. Therefore, the company is in a position to execute now on a potentially larger deal rather than waiting to generate more cash later in the year. As a reminder, the range of M&A outcomes has varied for GENI, ranging from personalized marketing content technology, AI tracking/analytics, and free-to-play games. We estimate cash will reach ~$320M by the end of 2025.”

For an analyst ratings summary and ratings history on Genius Sports Ltd. click here. For more ratings news on Genius Sports Ltd. click here.

Shares of Genius Sports Ltd. closed at $8.82 yesterday.

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