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Investing.com - JPMorgan raised its price target on Sportradar Group AG (NASDAQ:SRAD) to $30.00 from $28.00 on Monday, while maintaining an Overweight rating on the sports data company. The stock, which has surged 129% over the past year, currently trades near its 52-week high of $26.19.
The investment bank cited Sportradar’s ability to leverage its scale and technology competencies to capitalize on global market growth as key factors behind the more optimistic outlook. The company’s strong execution is reflected in its impressive 23% revenue growth over the last twelve months.
JPMorgan noted that the company has successfully secured multi-year sports data rights contracts and demonstrated an ability to monetize these agreements effectively.
The firm expressed confidence in Sportradar’s strategy of gaining greater wallet share through cross-selling and up-selling customers into higher margin products and services, particularly in-play wagering options that align with sports betting operators’ strategic priorities.
These favorable business conditions could provide upside to Sportradar’s three-year financial targets presented at its recent Investor Day and generate substantial cash for potential mergers and acquisitions or shareholder returns, according to JPMorgan. The company maintains a strong balance sheet with more cash than debt, while InvestingPro analysis reveals 12 additional key insights about Sportradar’s financial health and growth prospects.
In other recent news, Sportradar Group AG reported robust fourth-quarter 2024 earnings, surpassing expectations in both revenue and EBITDA, prompting JPMorgan to raise its price target to $26 and reaffirm an Overweight rating. The company’s strong revenue growth and potential for margin expansion were highlighted as key factors in this decision. Additionally, Needham increased its price target for Sportradar to $28, maintaining a Buy rating, citing the company’s ability to navigate foreign exchange challenges while adhering to its 2025 guidance.
Macquarie initiated coverage on Sportradar with an Outperform rating and a $32 price target, emphasizing the company’s strategic position in the sports data ecosystem. UBS reiterated a Buy rating with a $29 price target, noting Sportradar’s effective management of sports rights costs. Sportradar also secured exclusive betting data rights for the FIFA Club World Cup 2025, in partnership with DAZN, further expanding its reach in the sports betting market.
These recent developments reflect Sportradar’s strategic initiatives and strong financial performance, which have garnered positive attention from multiple investment firms. The company’s focus on innovation and cost management continues to position it favorably in the sports data industry.
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