Genius Sports’ shares are trading on the cheap, so investors should consider scooping them up now, according to JPMorgan. The investment bank initiated coverage of the sports data and technology stock with an overweight rating. It also put an $8 price target on shares, implying 38% upside from Thursday’s close. “Risk/reward skews positive here,” analyst Samuel Nielsen said Friday in a note to clients. “Our favorable view is underpinned by GENI’s scarce combo of diversified above-market growth, strong execution, improving profitability/ [free cash flow], and attractive valuation, with optionality from prediction markets (PMs) that doesn’t appear to be reflected in Street estimates.” GENI YTD mountain GENI year to date Genius Sports serves as a critical infrastructure provider for sports books, supplying real-time data from live-event feeds to customers. Its shares trade at roughly five-times its fiscal year 2027 enterprise value, per JPMorgan. Shares of the company have plunged 47% year to date as sports books have faced more competition from prediction markets. The firm’s “controversial” acquisition of digital sports and gaming media network Legend also dinged Genius Sports’ stock earlier this year, according to JPMorgan. However, the pullback in shares offers a buying opportunity for smart investors, Nielsen noted. He added that the company’s stock is trading “meaningfully below” those of DraftKings and Flutter Entertainment. JPMorgan’s call is in line with consensus on Wall Street. Of the 22 analysts covering Genius Sports, 19 have a buy or strong buy rating on the stock, LSEG data shows.
