Deutsche Bank has begun coverage of Genius Sports (GENI, Financial), assigning the stock a Buy rating with a price target of $12. The bank's analysis suggests that the company offers a robust strategy for investors looking to navigate uncertain macroeconomic conditions. This is primarily due to the firm's business model, which remains largely unaffected by potential regulatory and consumer issues.
Approximately 60% of Genius Sports' revenue comes from a stable and predictable fixed stream. This segment is anticipated to grow at an annual rate in the high teens over the next three years. The growth is expected to be fueled by recent contract renewals, which include price escalators, and an expanding footprint in global markets.
Deutsche Bank highlights the defensive nature of Genius Sports' business, indicating that there is limited downside risk compared to its industry peers. This characteristic positions Genius Sports as an attractive option for investors seeking stability amidst potential market volatility.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for Genius Sports Ltd (GENI, Financial) is $12.04 with a high estimate of $14.00 and a low estimate of $11.00. The average target implies an upside of 16.51% from the current price of $10.33. More detailed estimate data can be found on the Genius Sports Ltd (GENI) Forecast page.
Based on the consensus recommendation from 14 brokerage firms, Genius Sports Ltd's (GENI, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Genius Sports Ltd (GENI, Financial) in one year is $9.10, suggesting a downside of 11.91% from the current price of $10.33. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Genius Sports Ltd (GENI) Summary page.
