JPMorgan Gives GENI a Boost with Overweight Rating Amid Market Woes
Genius Sports (NYSE: GENI) is a London-based company that provides raw data to various businesses, including sports leagues, sportsbooks, broadcasters, and advertisers. The company has over 1,000 partners, including the National Football League (NFL), the English Premier League, DraftKings (NASDAQ: DKNG), FanDuel, and ESPN.
The NFL is a major client for Genius Sports, providing it with exclusive rights to distribute official data through 2029. This deal powers over 98% of the legal U.S. sports betting market. In addition to its partnership with the NFL, Genius closed a $1.2 billion acquisition of Legend, a digital media network that includes Covers.com.
Genius Sports' position in the market is attractive due to its focus on data provision, rather than being a direct competitor to other sportsbooks. However, this hasn't prevented the company from being a market laggard alongside other gambling stocks, with shares down around 48% this year while the S&P 500 has risen about 12%. Despite this, JPMorgan Chase recently initiated coverage on GENI with an Overweight rating and $8 price target.