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On Thursday, Benchmark analyst Matthew Harrigan reaffirmed a Buy rating on Liberty Braves Group (NASDAQ:BATRA) with a steady price target of $60.00, representing significant upside from the current trading price of $44.50. According to InvestingPro analysis, BATRA is currently trading above its Fair Value, though the stock has demonstrated relatively low price volatility and achieved a solid 8.6% return year-to-date. Harrigan’s outlook remains positive on the valuation of major market sports teams, noting the potential for high selling prices as evidenced by the recent $3.6 billion valuation of the Portland Trail Blazers by Sportico. The Blazers are currently on sale by the estate of the late Paul Allen, which is expected to benefit from the NBA’s substantial $76 billion national TV contracts over the coming eleven seasons.
The estate has decided to retain ownership of the Seattle Seahawks, emphasizing the significance of the NFL team to Allen’s hometown. This decision comes at a time when Forbes has reported an average valuation of $2.6 billion for MLB teams this spring. However, Forbes also warns that the current uncertainty surrounding media rights is affecting these valuations, with some teams like the Colorado Rockies receiving lower appraisals compared to their 2024 figures.
Liberty Braves Group, which owns the Atlanta Braves, ranks as the eighth most expensive MLB team with a value of $3 billion, according to Forbes. This valuation places the Braves behind the New York Yankees and the Los Angeles Dodgers, valued at $8.2 billion and $6.8 billion respectively. The company’s market capitalization currently stands at $2.78 billion, with revenue growing at 4% over the last twelve months. InvestingPro data shows the company maintains a moderate debt level with a debt-to-equity ratio of 1.65. Despite this, the Braves boast a larger fan area TV market, encompassing the Southeast beyond Atlanta (excluding Florida), and have demonstrated a superior payroll return on investment in terms of on-field performance when compared to the Yankees and Dodgers.
Over the past five years, Forbes has observed significant growth in sports team valuations. NFL team values have increased by an average of 87% to $5.7 billion, NBA teams have seen a 101% increase to $4.4 billion, while MLB teams have experienced a more modest rise of 36%. Harrigan’s endorsement of the Liberty Braves stock comes amidst this backdrop of rising valuations in the sports industry. For investors seeking deeper insights, InvestingPro offers comprehensive valuation metrics and 10 additional ProTips for BATRA, along with detailed financial health scores and peer comparison tools in its Pro Research Report.
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