- Needham analyst Bernie McTernan reiterated a Buy rating on the shares of Genius Sports Ltd GENI with a price target of $7.
- The analyst noted that the next phase of Second Spectrum tech should deepen GENI's moat and provide revenue/cost-saving opportunities while pushing the convergence of sports betting and sports media.
- Last week, GENI hosted a tech demo showing the next phase of Second Spectrum, which improves the quality and quantity of data captured.
- The analyst mentioned that the mesh tech captures 7,000 data points per player versus 20-25 prior.
- The result is a digital recreation that should be indistinguishable from a regular broadcast, allowing for significant viewer personalization and revenue opportunities like dynamically inserting advertising at key moments and more bets with better odds, including a better in-play betting experience.
- On cost savings, the tech will allow for automated data capture, noted the analyst.
- The tech could help GENI to win future rights deals with the major stakeholders who use this tech, potentially making Genius Sports the preferred data partner.
- GENI is undertaking three broad pushes, establish official data, grow Media revenue and the Betting take rate, added the analyst.
- The company plays a crucial role in the sports betting process facilitating the transfer of data from sports leagues to sports books and should benefit from the rising tide of sports betting globally, agnostic of sporting betting operator market share and customer acquisition costs, said the analyst.
- The analyst believes GENI will be able to navigate the relative pricing power of its suppliers and end markets because of its exclusive data, which is becoming more valuable, and from additional revenue streams from its clients like ad tech and streaming.
- Price Action: GENI shares are trading lower by 6.87% at $4.20 on the last check Monday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Posted In:
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
