Genius Sports (GENI) Holds Citizens Market Outperform Rating Despite Arizona Legal Concerns

Genius Sports Limited (NYSE:GENI) ranks among the best stocks under $25 to buy now. On December 16, Citizens analyst firm maintained its Market Outperform rating for Genius Sports Limited (NYSE:GENI), with a $17 price target. The update comes amid legal worries in Arizona, where the state has banned prediction market offerings.

Citizens thinks Arizona’s measures against prediction markets might have a bearing on companies such as Fanatics, which has a gaming license as well as a high single-digit market share in Arizona, and PrizePicks, which runs on a fantasy license.

The firm notes that Genius Sports Limited (NYSE:GENI) provides data to traders who offer liquidity to firms getting cease-and-desist letters in Arizona, including Kalshi and Crypto.com, though it believes formal legal action against Genius Sports Limited (NYSE:GENI) is unlikely.

Moreover, on December 3, the company held its second Investor Day, during which it delivered a positive three-year outlook for revenue, adjusted EBITDA, and free cash flow, exceeding consensus estimates. Following this event, Guggenheim raised Genius Sports Limited (NYSE:GENI)’s’ price target to $17 while maintaining a Buy rating, while BTIG reiterated its $16 price target, citing advertising potential.

Genius Sports Limited (NYSE:GENI) develops and sells technology-led products and services to the sports, sports betting, and sports media industries.

While we acknowledge the potential of GENI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.