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Citi initiated coverage on Atlanta Braves Holdings Inc (NASDAQ:BATRK) with a neutral rating and a $45 price target on Friday. The stock, currently trading at $43.16 and near its 52-week high of $44.42, has shown steady momentum with a 12.8% gain year-to-date according to InvestingPro data.
The research firm cited favorable supply-demand dynamics for sports assets like the Braves, noting potential billionaire bidders outpace the available supply of teams in the market.
Citi identified a team sale as the primary means of shareholder value creation for the Liberty Braves Group, which owns the Atlanta Braves baseball franchise and associated real estate developments.
The firm believes such a sale is unlikely until a new Major League Baseball Collective Bargaining Agreement is reached, which Citi expects to occur in early 2027.
Citi views the stock’s risk-reward profile as "relatively balanced" given the current valuation and timeline for potential catalysts.
In other recent news, Atlanta Braves Holdings reported a significant rise in revenue for the first quarter of 2025, reaching $47.2 million, which exceeded the forecasted $31 million. This represents a notable year-over-year increase from $37.1 million in Q1 2024, driven by growth in both baseball operations and mixed-use development. Despite a loss in earnings per share of $0.66, the company’s revenue performance was a positive surprise, with a 52% beat over expectations. The company also highlighted its acquisition of the PennantPark office complex, which adds a new revenue stream and supports its strategy of diversifying income sources. Analysts from firms such as Rosenblatt Securities and Morgan Stanley (NYSE:MS) expressed interest in the sustainability of this revenue growth and the outlook for media and streaming opportunities. Additionally, Atlanta Braves Holdings is preparing for potential new MLB media agreements and has scheduled an Investor Day to discuss future strategies. The company’s executives have emphasized the importance of utilizing their assets year-round and expanding their real estate footprint to strengthen recurring revenue streams.
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