Stifel: Rush Street Interactive Stock Offers iGaming ‘Scarcity Value’

Following a 7.42% drop today, Rush Street Interactive (NYSE: RSI) — previously one of this year’s hottest gaming stocks — is off 14.71% over the past month, but at least one analyst says that pullback represents a buying opportunity.

In a report out late Monday, Stifel analyst Jeffrey Stantial initiated coverage of the BetRivers owner with a “buy” rating and a $34 price target, implying upside of 57.6% from today’s closing price. That represents a 30% premium to DraftKings (NASDAQ: DKNG), according to the analyst. Among the reasons Stantial is bullish on Rush Street Interactive is because it’s viewed as the most credible US-focused iGaming-first stock in the industry.

Among other publicly traded operators that focus on iGaming, there’s Super Group (NYSE: SGHC), but that company doesn’t do business in the U.S. That leaves Rush Street Interactive as the most investable domestic option for investors looking to lean into the growth of internet casinos.

Rush Street Interactive Stock, Plenty of Catalysts

Stantial highlights several catalysts that could facilitate a rebound by Rush Street Interactive stock, including potential “takeout optionality providing valuation support.”

The operator has been mentioned as a takeover target in the past, but those rumors last appeared in earnest three years ago. Chicago-based Rush Street Interactive said in the past it was open to takeover discussions and with a market capitalization of $5.4 billion today, it could be a valid target for suitors looking to bolster their iGaming positions.

Stantial points to the operator’s exposure to several fast-growing Latin American markets and ability to grow monthly active users (MAUs) in the face of soaring competition as among the other catalysts for the stock.

“Competition in U.S. iCasino has intensified and market share is structurally assailable, though we argue RSI have sufficiently proven strong iCasino operators with industry-leading MAU growth and marketing/promo efficiency widening further since early-2025,” says the analyst.

Rush Street Interactive Has a Firm Balance Sheet

Rush Street’s strong balance sheet is another reason the sell-side is bullish on the stock. The company concluded the second quarter with cash and cash equivalents of nearly $340 million against total debt of just $5.5 million.

Combine those data points with the iGaming-first approach and Rush Street may be all the more appealing to dip buyers at a time when some rivals are spending big on prediction markets and attracting new sports betting clients.

“We take a positive long-term view on RSI and tactically recommend using the trailing two-month pullback as a buying opportunity,” concludes Stantial.