Genius Sports recently secured two option years with the NFL and extended its exclusive official data rights deal an extra year. This extension will see the deal last through the 2028 Super Bowl.
Genius Sports is to remain the exclusive distributor of the NFL’s official live game data and next-gen stats feeds to global media and betting markets.
Off the back of this, B.Riley Securities has analysed Genius Sports on the back of this deal and reiterates that it is a good time to buy stock in the company.
The extension to the deal, as well as Genius Sports' recent UK football extension and a recent showcase of operating leverage/earnings momentum, remove primary investor concerns, suggesting this is a promising investment.
Genius Sports is currently listed at a price of $5.81 with a price target of $9.00, being listed as 'GENI' on the market.
B.Riley also says that, as there is no competitive bidding process, this will offer a sense of security for Genius Sports and show as a sign of stability for a potential investor.
B.Riley reports that NFL bleeds into Genuis Sports' business model, with Genius being paid 1.5% on pre-match bets and 5-7% on in-play bets. The data feed opportunity, opportunities with broadcasting, ad tech cross-selling and brand advertising are all partially fueled by Genius Sports' NFL partnership, showing the growth of the company.
B.Riley does acknowledge some risk, as there always is in the stock market. The cost of official data rights from leagues and federations could rise significantly, which would impact the cost analysis and negatively impact Genius Sports' stock price.
However, B.Riley notes the league and federations also benefit from Genius for league data, so assumes the costs of data rights will remain rational.
