Citizens has raised its view on Rush Street Interactive (NYSE: RSI), moving the stock from Market Perform to Market Outperform and assigning a $24.00 price target. The upgrade reflects what the analyst firm describes as a durable business model anchored by a favorable mix toward iGaming and a geographic footprint the firm considers advantageous for online gaming operators.
At the center of Citizens' thesis is user engagement. The research note highlights that Rush Street's monthly active user (MAU) growth accelerated in every quarter of 2025, finishing the year with 37% growth. Citizens contrasted that trajectory with larger rivals, which in the most recent quarter experienced MAU growth spanning from slightly negative to up 20%.
Catalysts and near-term drivers
Citizens identified several potential upside catalysts that could support better-than-expected results in coming quarters. These include the World Cup, an earlier-than-anticipated launch of online gaming in Alberta and improving customer economics. The firm views these factors as contributors that could push performance above current estimates if they materialize as expected.
Separately, Citizens noted that Rush Street stands to be among the largest beneficiaries should additional iGaming legalization occur, measured as a percentage of total company revenue. The firm flagged Virginia as a jurisdiction where an iGaming bill appears to be moving more favorably, but it also stated that it does not currently include such legalization in its base-case financial models. Citizens described the prospect of iGaming legalization as a call option on the stock, pointing to uncertainty around political drivers in Virginia that leaves the outcome unclear.
Other analyst actions and tax sensitivity
Benchmark also weighed in, reiterating a Buy rating on Rush Street Interactive with a $24.00 price target. Benchmark's update emphasized improved growth prospects driven in part by changes in Colombia's tax framework. The research firm estimated those tax changes could lower Rush Street Interactive's 2025 revenue by approximately $70 million and reduce adjusted EBITDA by $25-30 million.
Meanwhile, Citizens maintained a Market Outperform rating on Caesars Entertainment, setting a $37.00 price target. In its note, Citizens continued to monitor how developments such as betting exchanges might affect traditional gambling operators, keeping a favorable view on Caesars' positioning.
What this means for markets
The recent analyst activity highlights how regional regulatory moves, taxation shifts and major sporting events can influence the outlook and valuation of online-gaming companies. For Rush Street Interactive, the combination of strong user growth and exposure to potential iGaming legalization represent key inputs to the investment case, while tax developments in markets like Colombia remain material to near-term financial forecasts.