Stifel Initiates Hold on Genius Sports (GENI) as “Picks & Shovels” Model Strengthens Industry Position

Genius Sports Limited (NYSE:GENI) ranks among the best high growth European stocks to buy. On January 21, Stifel began coverage of Genius Sports Limited (NYSE:GENI) with a Hold rating and a $10 price target, citing the company’s “attractive ‘picks & shovels’ model” in the online sports betting industry, as well as its recurring revenues, solid net revenue retention, wide moat, and financial potential.

Although investors have long been concerned about competition for data rights, Stifel said that the industry seems to be solidifying into a “rational duopoly,” with Genius Sports’ contra-service model adding to the switching costs for consumers.

Driven by anticipated development in its AdTech division, the company’s management has set financial targets for 2028 that involve compound annual growth rates of 22% for revenue and 39% for EBITDA over three years. Given the stock’s premium multiple and possible challenges to the company’s long-term goals, Stifel believes the risk-reward ratio is “balanced” despite the “attractive” multi-year underlying outlook.

Genius Sports Limited (NYSE:GENI) is a global sports data and technology company powering the sports, betting, and media ecosystem. It captures and distributes live sports data, streaming, analytics, and integrity services to leagues, sportsbooks, and broadcasters worldwide.

While we acknowledge the potential of GENI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GENI and that has 100x upside potential, check out our report about this cheapest AI stock.

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