Analyst Ratings February 18, 2026

Benchmark Stays Bullish on Rush Street Interactive, Holds $24 Price Target

Analysts cite casino-first strategy, strong user metrics and operational efficiency despite elevated valuation and tax-related headwinds

By Marcus Reed RSI
Benchmark Stays Bullish on Rush Street Interactive, Holds $24 Price Target
RSI

Benchmark has upheld a Buy rating and a $24.00 price target for Rush Street Interactive (RSI), pointing to the company's casino-focused strategy and evident operational efficiencies. The decision aligns with InvestingPro data that indicates RSI may be undervalued, with analyst targets spanning $20 to $30. Strong fourth-quarter results, robust user growth and conservative marketing spending underpinned Benchmark's view, even as tax changes in Colombia and a high P/E ratio present clear headwinds.

Key Points

  • Benchmark reaffirmed a Buy rating and a $24.00 price target on Rush Street Interactive, citing a casino-first strategy and operational efficiency; InvestingPro shows analyst targets ranging from $20 to $30.
  • Strong fourth-quarter results and 2026 guidance above consensus were driven by significant user growth - North American iCasino monthly active users rose 51% YoY in Q4 and total North America MAUs rose 37% YoY - contributing to 23.15% revenue growth over the past 12 months and a five-year revenue CAGR of 71%.
  • Operational discipline was visible as marketing expenses increased just 2% in fiscal 2025 while revenue grew 23%; InvestingPro data indicates RSI holds more cash than debt and a Financial Health score of 3.18/5.

Benchmark maintains Buy and $24.00 target

Benchmark on Wednesday kept a Buy rating and a $24.00 price target on Rush Street Interactive stock (NYSE:RSI), highlighting the operator’s casino-first approach and what the firm described as structural operating efficiency. That price target falls within the broader analyst range reflected in InvestingPro’s data, which lists analyst targets between $20 and $30 and classifies the stock as currently undervalued.


Quarterly results and guidance

Rush Street reported fourth-quarter results that surpassed expectations and issued 2026 guidance above consensus estimates. The company saw a 51% year-over-year increase in North American iCasino monthly active users in the fourth quarter, achieved without adding new markets. This surge in engagement was a primary driver of the company’s 23.15% revenue increase over the last twelve months and supports a five-year revenue compound annual growth rate of 71%.

Total North America monthly active users rose 37% year-over-year, the company said. Management also recorded its third consecutive quarter in which first-time depositors reached a record level, and customer acquisition costs fell to their lowest point since before the company’s initial public offering.


Operating leverage and marketing discipline

Marketing outlays rose only 2% in fiscal year 2025 while revenue expanded 23%, a dynamic Benchmark pointed to as evidence of structural efficiency in Rush Street’s model. InvestingPro’s financial metrics that accompany the analyst view show Rush Street holds more cash than debt and carries a Financial Health score labeled "GREAT" at 3.18 out of 5.

Benchmark characterized the results as demonstrating differentiated growth, operating leverage and earnings expansion stemming from a casino-focused strategy. Those traits, the firm argued, support its continued Buy stance despite the stock trading at a relatively high price-to-earnings ratio of 57.48.

Analysts remain generally optimistic about profitability; the coverage noted two analysts recently revised earnings estimates upward.


Market context and tax-related impact

Benchmark’s reiteration of its Buy rating was echoed by a separate move from Citizens, which upgraded Rush Street to Market Outperform and set a $24.00 price target. Citizens attributed its upgrade to the company’s business model in online gaming and to the same user-growth trends, noting monthly active users rose 37% in 2025.

Benchmark also highlighted the effect of tax changes in Colombia on the company’s 2025 results. Those adjustments are estimated to have reduced Rush Street’s 2025 revenue by approximately $70 million and to have trimmed adjusted EBITDA by approximately $25-30 million, according to the firm’s assessment.


Peers and industry notes

In related coverage, Citizens maintained a Market Outperform rating for Caesars Entertainment with a $37.00 price target and said it remains constructive on Caesars amid continuing discussions about the potential impact of betting exchanges on traditional gambling operators. Those discussions underscore an evolving competitive and regulatory landscape for online and land-based gaming firms.


Research resources

For readers seeking deeper analysis, InvestingPro offers an RSI Pro Research Report that the platform says contains 10+ additional ProTips and further comprehensive analysis.


Bottom line

Benchmark’s maintained Buy and $24.00 price target reflect confidence in Rush Street Interactive’s user growth trajectory, margin leverage and liquidity position, even as the company contends with the earnings effects of Colombia tax changes and trades at an elevated P/E multiple.

Risks

  • Valuation risk: The stock trades at a high P/E ratio of 57.48, which could create downside sensitivity if growth or profitability expectations are not met - this primarily affects equity investors and market sentiment.
  • Tax-related headwind: Changes in Colombia’s tax framework are estimated to have reduced 2025 revenue by approximately $70 million and adjusted EBITDA by $25-30 million, directly impacting the company’s reported results and profitability measures.
  • Industry disruption risk: Ongoing discussions about the potential impact of betting exchanges on traditional gambling operators introduce uncertainty for competitive dynamics across the online gaming and broader gaming sectors.

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