Analyst recommends purchasing Genius Sports stock

July 6, 2023
By
Leer en Español

The report is based on an extended contract with the NFL through the 2028 Super Bowl.

Analyst B. Riley Securities has released a report that recommends investing in stock from Genius Sports.

The company recently extended its data rights deal with the NFL, along with two option years with the organization.

The amended agreement gives Genius Sports exclusive official data rights that will last through Super Bowl 2028.

Under the previous contract, Genius Sports maintained data rights to the brand for a four-year period, with the option for another two option years.

B. Riley Securites summarized its findings by noting that the NFL contract extension addresses previous investment concerns.

The group said in an official statement, “We believe the agreement removes a key renewal concern for investors and further validates GENI's technology-led business strategy.

“Today's NFL extension, coupled with its recent UK Football extension and recent showcase of operating leverage/earnings momentum negate primary investor concerns, in our view.”

The company went on to point out potential risks involved and noted that the US sports betting market could have significant effects on stock prices. B. Riley Securities concluded by saying, “The cost of official data rights from leagues and federations could rise significantly.

"If so, it would impact our cost analysis and negatively impact GENI's stock price, in our view. However, we note the league and federations also benefit from GENI or competitor relationships for league data, and we assume costs of data rights remain rational.

“Our estimates are reliant on a certain percentage of the US population having access to online sports wagering. If this does not materialize, it would be detrimental to our earnings outlook and stock thesis.”

In addition to the extension, Genius Sport recently launched free-to-play games via its collaboration with several NFL teams, such as the Denver Broncos, Indianapolis Colts, Las Vegas Raiders and Los Angeles Rams.

State-by-State

Product Spotlight

Konami

Things get unruly in the company of some fleecy characters in the new Konami Gaming’s new Unwooly Riches slot series.
GA HUDDLE #087

John Connelly - Interblock preparing to launch online by the end of year

John Connelly, the Global CEO of Interblock, joins the Huddle to talk about:
- The company's conversion to the online space
- The performance of ETGs
- Interblock's new philanthropic efforts
- The trend of companies going private
- And more!
GA HUDDLE #086

Michael Hershman - Dispelling casino 'myths:' New York needs to lose fear of the unknown

Michael Hershman, CEO of the Soloviev Group, joins Tim Poole on the Huddle to put forward his case that the Freedom Plaza is the way to go for one of New York's casino licences. He fields a variety of questions - not shying away from any of them - on why 'myths' about casinos and a fear of the unknown should be dispelled, as well as acknowledging the strength of rival bids and discussing opposition to the project.

Five years ago, before the mass proliferation of social media we see today – and even before the Covid-19 pandemic – I think you would be hard pressed to find a CEO talking about “Instagrammable moments.” KPIs w...

gga
The Global Gaming Awards: Looking ahead to 2024's ceremonies.
After more than a decade of celebrating gaming's best, Gaming America looks ahead to a bright 2024 for the Global Gaming Awards in the Americas and Asia-Pacific.
GA
From the top: The Indian Gaming Tradeshow & Convention
Tribal gaming is a uniquely American institution and all its uncommon attributes were on display this April at the Indian Gaming Tradeshow & Convention in Anaheim, California.
terre
Review: Terre Haute Casino Resort and Harrah's Hoosier Park Racing & Casino
Terre Haute Casino Resort vs. Harrah's Hoosier Park Racing & Casino, Gaming America's Laura Mack reviews each property.
andrew
Eureka Casino interview: CEO Andre Carrier on resort expansion
We spoke with returning guest, CEO Andre Carrier, about Eureka Casino Resort's expansion. He aims to not only change the look and feel of the casino, but to also build residential housing around it.