Shares of dMY Technology II (NYSE:DMYD) popped today, up by 14% as of 12 p.m. EST, after getting a bullish initiation from Wall Street. Craig-Hallum kicked off coverage of the company with a buy rating, alongside a price target of $25.
dMY II is a special purpose acquisition company (SPAC) that announced in October that it would merge with Genius Sports Group to take the latter company public. Genius Sports specializes in providing data and technology to the sports industry, which helps facilitate the booming market for sports betting.
Craig-Hallum analyst Ryan Sigdahl is bullish on Genius Sports Group’s future prospects, pointing to a strong market position and industry catalysts. The company’s fundamentals are also compelling and offer investors an attractive opportunity, in Sigdahl’s view.
The merger, known as a de-SPAC transaction, has not yet closed, but Genius Sports has filed its F-4 Registration Statement with the SEC ahead of the vote by dMY II’s shareholders. Genius Sports recently reaffirmed its financial forecasts for 2020, and revenue should be approximately $145 million with adjusted earnings before interest, taxes, depreciation, and amortization of $14 million.
“Amidst a global pandemic, we have made great progress in 2020 and are on track for sustained strong performance in 2021,” Genius Sports CEO Mark Locke recently commented. “Looking ahead, our anticipated merger with dMY II and NYSE listing will strengthen our position as a true partner to sports leagues, sportsbooks and media groups worldwide.”
Once the transaction closes, the stock will change its ticker symbol to “GENI.”