Morgan Stanley Starts Rush Street Interactive (RSI) at Equalweight

Morgan Stanley analyst Stephen Grambling initiates coverage on Rush Street Interactive (NYSE: RSI) with a Equalweight rating and a price target of $22.00.

The analyst comments: “RSI is an online casino (iCasino) and online sports betting (OSB) operator that generated ~$1.1bn of revenue in 2025 across 16 US states, Ontario (now in Alberta as well) and three Latin American countries. The company is the most iCasino-centric of the public US operators (we estimate ~80% of US GGR vs. ~1/3rd for DKNG/FanDuel), ranks #4 in the two largest open iCasino states (PA, MI) and is the exclusive operator in Delaware. That mix has translated into revenue growth that has held at 20-30% y/y in North America over the past year while the three largest peers went negative in 2Q26. This was accomplished with the highest EBITDA margin in the group ex-CZR (~14% in 2025 vs. ~10/13% for DKNG/FanDuel) on the lowest marketing intensity (~15% of revenue vs. 19-22%). We expect the growth gap to persist: We forecast a ~25% revenue CAGR and ~40% Adj. EBITDA CAGR in 2025-28e, with margins reaching ~17% by 2028e. With that said, the current stock valuation already prices in best-in-class growth, with RSI trading at ~12x/9.5x 2027e/2028e cons EV/EBITDA against ~7.5x/6.5x for DKNG, FLUT, Entain, Lottomatica, and Super Group (all on consensus estimates). We apply a ~12x NTM multiple (a premium to the peer target multiples we apply of ~10x), leading to ~15% upside to our 12-month PT. In our view RSI looks appropriately valued at current levels, though we acknowledge wide bull-to-bear skew and see better RaRs within our coverage group. As such, it's too early to defend RSI despite the premium, in our view, and we await evidence of new-state share capture or LATAM durability before getting more constructive. We initiate with an Equal-weight rating.”

For an analyst ratings summary and ratings history on Rush Street Interactive click here. For more ratings news on Rush Street Interactive click here.

Shares of Rush Street Interactive closed at $18.52 yesterday.

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