Bullish indicating open at $55-$60, IPO prices at $37
On Friday, BTIG analysts initiated coverage on Sportradar Group AG (NASDAQ:SRAD), a leading provider in the B2B sports data and technology market, with a Buy rating and a price target of $28.00. Currently trading at $22.03, the stock has shown remarkable momentum with a 97% return over the past year. According to InvestingPro data, analyst targets range from $12.67 to $33.53, with the stock currently trading above its Fair Value estimate. The firm highlights Sportradar's potential for steady mid-teens or higher top-line growth which is anticipated to surpass the growth of rights and fixed expenses, leading to improved margins and cash flow.
Sportradar, which operates alongside Genius Sports, is considered to be at the beginning of a multi-year cycle of monetization. The company's strong potential is reflected in its impressive revenue growth of 26% in the last twelve months, with InvestingPro analysis showing a projected 15% revenue growth for the upcoming fiscal year. BTIG's report delves into the company's mid-teens top-line outlook for 2024-2027, suggesting the forecast could be conservative due to market expansion, upselling, and extensions into adjacent markets. These insights were underscored during Sportradar's Investor Day on April 1, 2025.
The report also examines Sportradar's acquisition of IMG ARENA, which is expected to close in the fourth quarter of 2025. This acquisition is seen as a strategically favorable move that will contribute to the company's growth narrative from 2026 onwards. BTIG analysts believe the deal, along with organic growth drivers, will contribute to the company's financial health.
Sportradar is in a strong position with its key rights secured for an average of six more years. The company is evolving from a focus on odds and data to offering a more diversified range of products and services, including AI-driven product releases aimed at enhancing personalization and the in-app experience. These innovations are expected to drive additional revenue through increased wagering.
Finally, BTIG points to Sportradar's solid balance sheet, with nearly €1 billion in capital expected to be accumulated. This financial strength is confirmed by InvestingPro data, showing the company holds more cash than debt and maintains a healthy current ratio of 1.53. This capital provides the company with options for reinvestment and extending their customer monetization runway. With concerns about renewal risk and terminal value appearing to be mitigated for the foreseeable future, and considering the stock's valuation, BTIG believes the market will recognize Sportradar's fundamental performance improvements in the coming years. InvestingPro subscribers can access 15 additional key insights and a comprehensive Pro Research Report for deeper analysis of SRAD's investment potential.
In other recent news, Sportradar Group AG has been the focus of multiple analyst reviews following its Investor Day event. Canaccord Genuity maintained a Buy rating for Sportradar, raising the price target from $30 to $32, highlighting the company's promising growth prospects and financial outlook. Guggenheim also upheld a Buy rating with a $27 price target, expressing confidence in Sportradar's multi-year financial projections, which exceed consensus expectations. Meanwhile, JMP analysts reiterated a Market Outperform rating with a $25 target, emphasizing Sportradar's realistic financial goals for 2027, including significant growth in revenue and EBITDA.
Additionally, Sportradar announced the acquisition of IMG Arena's global sports betting rights, prompting JMP Securities to increase its price target to $24. The acquisition is expected to generate approximately €135 million in revenue and €35 million in EBITDA in its first year. Sportradar's management has expressed confidence in integrating these new assets effectively. The company's Investor Day presentations further showcased Sportradar's strategic direction and commitment to leveraging its industry position for sustained growth, with notable figures in the sports industry participating in the discussions.
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