How Genius Sports (GENI) leverages media monetization and operational leverage

Genius Sports Limited (NYSE:GENES) is one of them the best communications services stocks according to hedge funds.

Benchmark & ​​Co analyst Mike Hickey reaffirmed a bullish stance on Genius Sports Limited (NYSE:GENI) and gave the stock a Buy rating on December 30. The analyst has estimated a price target of $16, which means an upside potential of more than 54 percent.

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Hickey attributed his outperform rating on Genius Sports Limited (NYSE:GENI) to a number of structural factors. One of them is the increase in the company’s fixed costs, which leads to an increase in the leverage of its operations. In addition, the company has a unique advantage in media monetization. Instead of using traditional content licensing routes, they can monetize in real-time through advertising and highly interactive data-driven engagement methods.

Hickey also acknowledged management’s multi-year guidance in an Investor Day presentation, where they forecast $1.2 billion in revenue by 2028. The company is also expected to achieve an adjusted EBITDA of around 30% and a free cash flow conversion ratio of around 60%.

On December 4, Citizens had also revised its target price on Genius Sports Limited (NYSE:GENI) from $15 to $17. Rated a Buy, the company forecast a strong 9% cash flow conversion ratio in the coming year-end results, resulting in $12 million in free cash flow.

Genius Sports Limited (NYSE:GENI) is a sports data, analytics and technology company that delivers data management and technology-based solutions to fans, sports leagues and media companies. They also engage with bookmakers in the betting market where they utilize their data management capabilities to optimize the betting market.

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Disclosure: None. This article was originally published at Insider monkey.