Hedge funds cut NFLX, keep big bets on MSFT, AMZN, add NVDA
On Monday, Guggenheim reaffirmed its confidence in Sportradar Group AG (NASDAQ:SRAD), maintaining a Buy rating and a $27.00 price target for the company’s shares. The endorsement comes after Sportradar reported its first-quarter results, which closely aligned with Guggenheim’s projections. The company’s revenue reached €311 million, slightly above the forecasted €306 million, and EBITDA was reported at €59 million, compared to the anticipated €55 million. InvestingPro data reveals the company has maintained strong momentum, with revenue growing 26% over the last twelve months to $1.15 billion, while maintaining a healthy gross profit margin of 25.2%.
Sportradar, a provider of sports data and content, also confirmed its guidance for the full year and the next three years. Furthermore, the company is progressing with its planned acquisition of IMG ARENA, which is expected to be finalized in late third quarter or early fourth quarter. This acquisition is seen as a value-adding move for Sportradar. According to InvestingPro analysis, the company maintains a strong financial position with more cash than debt on its balance sheet and a healthy current ratio of 1.53, providing flexibility for strategic investments. For deeper insights into Sportradar’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In addition to these developments, Sportradar’s management has actively engaged in its share repurchase program, buying back 4.8 million shares for a total of $65 million. This repurchase coincided with the completion of a recent secondary offering.
Guggenheim’s analysis suggests that Sportradar holds a unique position with its scaled global sports technology platform. The company operates at the convergence of sports, media/technology, and online sports betting (OSB), sectors that are anticipated to experience continued double-digit growth. Guggenheim’s stance is that these factors, coupled with the company’s strategic initiatives, position Sportradar favorably for the future.
In other recent news, Sportradar Group AG announced preliminary financial results for the first quarter of 2025, reporting estimated revenues between €307 million and €311 million, slightly above the expected €305.8 million. The company also reported an Adjusted EBITDA range of €56 million to €58 million, surpassing the forecasted €54.5 million. Sportradar’s strong performance has led Benchmark analysts to maintain a Buy rating on the stock, with a price target increase to $30. Similarly, BofA Securities upgraded Sportradar’s stock rating to Buy, raising the price target from $12 to $28, citing improved revenue outlook and cost management.
Additionally, Sportradar has announced a secondary offering of 23 million Class A ordinary shares by affiliates, with no proceeds going to the company. Sportradar has also authorized the repurchase of 3 million shares as part of its existing $200 million share repurchase program. The anticipated acquisition of IMG ARENA in late 2025 is expected to enhance Sportradar’s revenue and margins, although it is not yet included in current financial guidance. Both Benchmark and BofA Securities have highlighted Sportradar’s strategic position in the global gaming ecosystem, with potential growth driven by automation, improved take rates, and content monetization.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.