Hedge funds cut NFLX, keep big bets on MSFT, AMZN, add NVDA
On Tuesday, JMP analysts maintained a Market Outperform rating and a $25.00 price target for Sportradar Group AG (NASDAQ:SRAD), which has seen its stock surge by nearly 146% over the past year. According to InvestingPro data, the company is currently trading above its Fair Value, with analyst targets ranging from $18.86 to $31.97. The company has experienced several notable events in recent months, including earnings releases, an investor day, and a secondary offering. Although this quarter has been relatively quiet compared to the previous activity-filled months, the company’s shares underperformed due to expectations that full-year guidance would remain unchanged, largely due to the adverse effects of foreign exchange rates.
JMP analysts highlighted that management indicated guidance would have been raised if not for the foreign exchange impact. Despite this, analysts reiterated their positive outlook on Sportradar’s stock, citing the company’s resilience against macroeconomic factors, thanks to its diversified business model. Supporting this view, InvestingPro data reveals the company holds more cash than debt on its balance sheet and maintains a healthy current ratio of 1.35. They expressed confidence in the company’s long-term financial projections, which include a 15% compound annual growth rate (CAGR) in revenue, with a 17% increase in the first quarter of 2025, and a 27% EBITDA CAGR, along with €275 million in free cash flow through 2027. For deeper insights into Sportradar’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
The analysts emphasized that Sportradar’s projected cash flow and earnings trajectory are expected to provide the company with various strategic options in the future. This could include engaging in accretive mergers and acquisitions that would be sensible for the company’s growth. The analysts’ stance reflects a belief in the enduring strength of Sportradar’s cash flow and the potential benefits of its scalability for future business endeavors.
Sportradar’s recent performance and the analysts’ reiteration of their rating and price target suggest that the company is well-positioned to navigate the current economic climate and continue its growth trajectory. Despite the lack of guidance increase for the year, JMP analysts remain confident in Sportradar’s ability to achieve its long-term financial goals.
In other recent news, Sportradar Group AG reported strong first-quarter financial results, surpassing consensus estimates with revenue of approximately €311 million and an adjusted EBITDA of €59 million. The company maintained its fiscal year 2025 guidance, projecting revenue of at least $1.273 billion and an AEBITDA of $281 million. Sportradar is also progressing with its planned acquisition of IMG ARENA, which is expected to add between $130 million and $140 million in annualized revenue. Analyst firms like Benchmark and Guggenheim have reiterated their Buy ratings, with price targets set at $30 and $27, respectively, highlighting Sportradar’s growth prospects and strategic positioning in the sports technology sector.
Additionally, Sportradar announced a secondary public offering of 23 million Class A ordinary shares, with affiliates of the Canada Pension Plan Investment Board and others as selling shareholders. The company itself will not receive any proceeds from this offering but has authorized the repurchase of 3 million shares as part of its existing $200 million buyback plan. Sportradar’s strong financial position is further demonstrated by its cash reserves of $358 million and no debt. The company’s strategic initiatives, coupled with its robust platform, position it favorably for future growth, according to analysts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.