Citizens reiterates Rush Street Interactive stock rating on valuation

Citizens has reaffirmed a Market Outperform rating and $34.00 price target on Rush Street Interactive (NYSE: RSI) based on the company's strong valuation and fundamentals. The firm highlighted that the stock trades at a 14x 2027 consensus EBITDA multiple, which is below its target of 22x. Despite a 17% decline in the stock price over the past week, revenue growth has been robust at 34% over the last year, with the company holding more cash than debt.

InvestingPro's Fair Value analysis supports the undervaluation of the stock at its current level, with Citizens citing 22x 2027 EV/EBITDA as the basis for its valuation. The recent share price pressure is seen as disconnected from the underlying fundamentals, presenting a buying opportunity. Potential catalysts for the stock include continued strength in U.S. iGaming, sustained growth in the company's ex-U.S. business, and the possibility of the stock regaining its 200-day moving average as investor sentiment improves.

In Q2 2026, Rush Street Interactive reported revenue of $393.8 million, surpassing estimates and marking its fastest growth in over four years, with earnings per share at $0.15. Notably, Needham increased its price target to $36 from $33 with a Buy rating, while Citizens raised its target to $34 from $33, citing strong performance in Q2.