Jefferies raises Sportradar stock price target to $32 on IMG Arena deal

Published 02/07/2025, 22:06
Jefferies raises Sportradar stock price target to $32 on IMG Arena deal

Investing.com - Jefferies has raised its price target on Sportradar Group AG (NASDAQ:SRAD) to $32.00 from $27.00 while maintaining a Buy rating on the stock. The company’s stock has shown remarkable momentum, delivering a 151.73% return over the past year and currently trading near its 52-week high of $28.50. According to InvestingPro analysis, the stock appears overvalued at current levels.

The price target increase reflects Jefferies’ higher valuation multiples for Sportradar, with the firm now applying a 5x EV/Sales multiple (up from 4x) and a 20x EV/EBITDA multiple (up from 13.5x previously).

Jefferies is also attributing approximately €2.50 per share in value to Sportradar’s IMG Arena deal, which contributes to the higher price target when converted at a 1.18 EUR/USD exchange rate.

The firm has trimmed its estimates for Sportradar due to foreign exchange headwinds, with second-quarter 2025 revenue now projected at €313 million and adjusted EBITDA at €56 million, down from previous estimates of €319 million and €57 million respectively.

For full-year 2025, Jefferies now forecasts revenue of €1.266 billion and adjusted EBITDA of €287 million, while its fiscal year 2026 projections stand at €1.44 billion in revenue and €352 million in adjusted EBITDA, below consensus estimates of €1.46 billion and €359 million.

In other recent news, Sportradar Group has been the subject of several notable developments. Truist Securities initiated coverage on the company with a Buy rating and a $33 price target, highlighting Sportradar’s significant role in the sports betting industry and its projected 27% EBITDA growth over three years. Additionally, JPMorgan increased its price target for Sportradar to $30, citing the company’s effective monetization of sports data rights and potential for increased shareholder returns. Macquarie also began coverage with an Outperform rating and a $32 price target, emphasizing Sportradar’s integral position in the sports data ecosystem.

Sportradar is expanding its presence in Brazil’s newly regulated sports betting market, having opened its first office in the country. The company already serves 50 out of the 80 licensed operators in Brazil, with 35 relying on Sportradar for risk management and trading operations. In Brazil, Sportradar’s monitoring services have led to a 48% decrease in suspicious soccer matches. UBS reiterated its Buy rating with a $29 price target, noting Sportradar’s effective management of sports rights costs and potential future advantages in contract renewals. These recent developments highlight Sportradar’s strategic moves and growth potential in the global sports betting landscape.

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