Benchmark maintains Buy on Sportradar shares with $30 target

On Monday, Sportradar Group AG (NASDAQ:SRAD), which has delivered an impressive 149% return over the past year according to InvestingPro data, received a reiteration of a Buy rating and a $30.00 price target from Benchmark, following the company’s strong first-quarter results. The company maintains a "GREAT" Financial Health Score, reflecting its solid operational foundation. Sportradar surpassed consensus estimates, reporting revenue of $311 million compared to the anticipated $306.4 million, and an AEBITDA of $59 million, which was above the expected $54.9 million. The company’s margin also improved, reaching 18.9%, contributing to its strong 26.09% year-over-year revenue growth.

The growth experienced by Sportradar was attributed to several factors, including the rising adoption of in-play betting, a 31% year-over-year increase in U.S. revenue, and sustained progress in media and marketing services, along with iGaming. Despite facing foreign exchange headwinds, management maintained their fiscal year 2025 guidance, forecasting revenue of at least $1.273 billion and AEBITDA of $281 million. They also projected a margin of 22% and an improvement in free cash flow conversion in the second half of the year.

Sportradar’s potential acquisition of IMG ARENA is expected to contribute between $130 million and $140 million in annualized revenue and $30 million to $35 million in adjusted EBITDA. At the end of the first quarter, Sportradar reported a strong financial position with $358 million in cash and no debt, and had repurchased $86 million in shares as part of its $200 million buyback plan.

Benchmark’s analysis highlighted Sportradar’s exclusive rights to major U.S. leagues, a robust global platform, and accelerating product innovation as key drivers for the company’s multiyear growth prospects. Based on an estimated normalized AEBITDA of $356 million for fiscal years 2025 and 2026, and applying a 25x multiple, Benchmark has maintained its $30 price target and reaffirmed its Buy rating for Sportradar stock. Trading at a P/E ratio of 192, InvestingPro analysis suggests the stock is currently overvalued relative to its Fair Value. Investors seeking deeper insights can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, which includes detailed valuation analysis and 11 additional ProTips for SRAD.

In other recent news, Sportradar Group AG reported preliminary first-quarter revenues of approximately €307 million to €311 million, surpassing the consensus estimate of €305.8 million. The company’s Adjusted EBITDA for the quarter is expected to range from €56 million to €58 million, exceeding the forecasted €54.5 million. Following these results, Guggenheim maintained a Buy rating with a $27 price target, while Benchmark also reiterated a Buy rating, setting a target of $30. Additionally, BofA Securities upgraded Sportradar from Underperform to Buy, raising the price target to $28, citing improved revenue outlook and potential margin leverage.

Sportradar is progressing with its acquisition of IMG ARENA, anticipated to finalize by late third quarter or early fourth quarter, which is expected to enhance its live betting offerings. The company also announced a secondary public offering of 23 million Class A ordinary shares, with affiliates of Canada Pension Plan Investment Board and Technology Crossover Ventures among the sellers. Sportradar itself is not selling shares in this offering but has authorized a repurchase of 3 million shares as part of its existing buyback program. These developments highlight Sportradar’s strategic initiatives and ongoing financial performance, drawing attention from various analysts and investors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.