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Tuesday, Sportradar Group AG (NASDAQ:SRAD) shares maintained their Buy rating with a steady price target of $30.00, as affirmed by Benchmark analysts. The favorable stance comes after Sportradar’s preliminary Q1 2025 financial results, released on April 22, revealed revenues and adjusted EBITDA that slightly surpassed the consensus estimates. According to InvestingPro data, the company has demonstrated robust financial health with an overall score of "GREAT" and maintains a strong balance sheet with more cash than debt.
Sportradar reported preliminary first-quarter revenues between €307 million to €311 million, marginally higher than the expected €305.8 million. Adjusted EBITDA is estimated to be in the range of €56 million to €58 million, which also exceeds the forecasted €54.5 million. These figures indicate the company’s consistent performance and potential for accelerated value creation.
The company’s robust growth is attributed to its strong revenue model, scalable infrastructure, and increasing global demand for its extensive product offerings. With a history of exceeding market growth rates, Sportradar has seen its international revenue grow at a compound annual rate of 20%, and its U.S. revenue surge at an impressive 54%. Recent InvestingPro data shows impressive momentum, with revenue growing 26.09% over the last twelve months and the stock delivering a remarkable 133.89% return over the past year. The firm’s approach, which includes a modular product strategy, a vast content portfolio, and a client-focused sales playbook, has facilitated its deep integration into over 130 countries.
Looking ahead, Sportradar has set a target for a 15% compound annual revenue growth through 2027. This goal is supported by a strategy that includes automation, improved take rates, and greater content monetization, which in turn are expected to contribute to a 700-basis point expansion in AEBITDA and free cash flow margins. While the stock currently trades at a premium to its InvestingPro Fair Value, analysts remain optimistic, with net income expected to grow this year. For deeper insights into Sportradar’s valuation and growth prospects, investors can access comprehensive analysis through the Pro Research Report, available exclusively on InvestingPro.
The anticipated acquisition of IMG ARENA, projected to be finalized in the fourth quarter of 2025, is not yet factored into the current guidance but is expected to be beneficial to the company’s revenue and margins. IMG ARENA’s integration will bolster Sportradar’s live betting offerings in popular sports such as tennis, basketball, and soccer.
Benchmark highlighted Sportradar’s strategic position within the global gaming ecosystem, offering investors exposure to a solid secular growth narrative while mitigating the risks associated with direct sports betting operators, such as unpredictable sports results and increasing tax pressures. The endorsement of Sportradar’s stock was further solidified by its inclusion in the EDM Top Ideas list.
In other recent news, Sportradar Group AG announced preliminary financial results for the first quarter of 2025, reporting estimated revenue between €307 million and €311 million, with a profit ranging from €20 million to €24 million. The company also disclosed an Adjusted EBITDA of €56 million to €58 million for the quarter. Concurrently, Sportradar affiliates plan a secondary public offering of 23 million Class A ordinary shares, with an option for underwriters to purchase an additional 3.45 million shares. While Sportradar will not receive proceeds from this offering, it has authorized the repurchase of 3 million shares, funded through its existing share repurchase program. Analysts have shown increased confidence in Sportradar, with BofA Securities upgrading the stock to "Buy" and raising the price target to $28, citing improved revenue outlook and cost management. Similarly, Benchmark has increased its price target to $30, maintaining a "Buy" rating, and highlighting Sportradar’s robust revenue model and market growth. BTIG also initiated coverage with a "Buy" rating and a $28 price target, noting Sportradar’s potential for steady growth and strategic acquisitions like IMG ARENA, expected to enhance revenue and margins. These developments indicate a positive outlook from analysts regarding Sportradar’s financial performance and strategic initiatives.
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