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On Wednesday, Guggenheim analysts reaffirmed their Buy rating on Sportradar Group AG (NASDAQ:SRAD) with a steady price target of $27.00. The firm’s assessment followed Sportradar’s fourth-quarter earnings release, which showcased robust performance, closely aligning with Guggenheim’s projections. The sports data company reported quarterly revenue of €307 million, compared to Guggenheim’s estimate of €310 million, and an EBITDA of €61 million, slightly below the forecasted €68 million. According to InvestingPro data, the company has maintained impressive revenue growth of 26.55% over the last twelve months, with a market capitalization now reaching $5.99 billion.
Sportradar also announced the acquisition of IMG ARENA, a move Guggenheim believes to be immediately accretive to the company’s revenue, EBITDA margins, and free cash flow. Guggenheim’s analysts view the transaction as an exceptional strategic fit for Sportradar. Alongside this development, Sportradar provided its 2025 financial outlook, further underlining the company’s growth trajectory. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 1.53, indicating solid liquidity to support its expansion plans.
Management highlighted the company’s strong liquidity position and the potential for accelerated share repurchase programs, which could be indicative of Sportradar’s confidence in its financial health and future prospects. Guggenheim’s continued endorsement of Sportradar is rooted in the belief that the company has successfully established a unique and scalable sports technology platform. This platform operates at the nexus of sports, media/technology, and online sports betting, benefiting from long-term secular trends that are expected to sustain double-digit growth well into the future. The company’s stock has demonstrated remarkable performance, delivering a 99% return over the past year and currently trading near its 52-week high of $22.94. For deeper insights into Sportradar’s valuation and growth potential, investors can access comprehensive analysis through InvestingPro’s detailed research reports.
In other recent news, Sportradar Group AG reported its fourth-quarter 2024 earnings, revealing a strong performance with a 22% increase in revenue to $370 million compared to the previous year. Despite the robust revenue growth, the company’s earnings per share (EPS) did not meet expectations, coming in at $0 against a forecast of $0.04. The company’s adjusted EBITDA saw a significant 53% increase, reaching $61 million, which reflects improved profitability and cost management. Free cash flow for the year more than doubled to $118 million. Benchmark analysts responded to these results by raising Sportradar’s stock price target from $24.00 to $26.00, maintaining a Buy rating. The U.S. market played a crucial role in this growth, contributing 24% of total revenue with a 58% year-over-year increase. Additionally, Sportradar’s financial guidance for 2025 is optimistic, projecting at least $1.27 billion in revenue, a 15% rise year-over-year, and $281 million in adjusted EBITDA, up 26% from the prior year. The company’s strategic initiatives, including the acquisition of IMG Arena and securing long-term sports rights deals, are expected to support continued revenue and margin expansion.
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