Wells Fargo Cites Legend Acquisition Uncertainty as Potential Headwind for Genius Sports (GENI) Valuation

Maham Fatima

Thu, February 19, 2026 at 9:44 AM GMT+9 2 min read

In this article:

GENI

+8.46%

Genius Sports Limited (NYSE:GENI) is one of the best single digit stocks to buy according to analysts. On February 9, Wells Fargo lowered its price target for Genius Sports from $16 to $10 and kept an Overweight rating. The firm cited uncertainty surrounding the company’s recent acquisition of Legend and noted that the deal came as a surprise. The firm believes that the stock’s valuation will likely remain under pressure until further details are provided regarding the purchase price and the long-term durability of Legend’s business.

Citizens analyst Jordan Bender lowered the firm’s price target on Genius Sports Limited (NYSE:GENI) on the same day to $11 from $17 and maintained an Outperform rating. Bender noted that the company’s acquisition of Legend sparked a sharp selloff, with investors questioning the strategic fit and viewing the transaction as an expensive bet on a low-quality affiliate-style business. This move raised significant concerns regarding the company’s leverage and overall earnings quality.

On February 6, Craig-Hallum lowered the price target on Genius Sports to $15 from $20 with a Buy rating. While the firm noted solid business fundamentals, it raised concerns regarding the size of the Legend acquisition and its negative impact on the company’s valuation multiple. The firm expressed that while affiliate marketing can be an addition, the sector remains volatile due to shifting operator marketing spend, regulatory pressures, and disruptions caused by Google search updates and LLMs.

Flutter Entertainment (FLUT) PT Lowered to $300 by UBS Due to US Online Sports Betting Slowdown

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now**.**

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

Terms and Privacy Policy

Privacy Dashboard

More Info