Sportradar stock initiated at outperform by Macquarie on sports data growth

Investing.com - Macquarie initiated coverage on Sportradar Group AG (NASDAQ:SRAD) with an outperform rating and a $32.00 price target on Friday. The stock, currently trading near its 52-week high of $25.85, has delivered an impressive 137% return over the past year.

The research firm highlighted Sportradar’s position at "the core of the fan engagement calculus" with technology, trust, and integrity to grow the sports data ecosystem.

Macquarie noted that Sportradar holds contracts with three of the four major U.S. sports leagues, representing approximately 70% of volume in its portfolio.

The firm’s analysis pointed to the broader growth trend in sports as an asset class, citing the Ross-Arctos Sports Franchise Index showing sports leagues have grown at a 12% 20-year compound annual growth rate (CAGR), outpacing most other asset classes.

Sportradar Group AG, which has an $8 billion market capitalization, provides data and technology services that support the sports betting and media industries.

In other recent news, Sportradar Group AG has announced significant developments in its operations and financial outlook. The company reported robust fourth-quarter 2024 earnings that exceeded expectations in both revenue and EBITDA, prompting JPMorgan to raise its price target from $20 to $26 and reaffirm an Overweight rating. Similarly, Needham increased its price target to $28, maintaining a Buy rating, citing Sportradar’s ability to manage foreign exchange challenges and its strong ad:s platform performance. Meanwhile, UBS reiterated its buy rating with a $29 price target, highlighting Sportradar’s effective management of sports rights costs, contrasting it with Genius Sports’ more expensive deals.

Adding to its portfolio, Sportradar secured exclusive betting data rights for the FIFA Club World Cup 2025, partnering with DAZN to distribute data and media content globally. This strategic move enhances Sportradar’s presence in the betting market, offering extensive betting markets and utilizing its Universal Fraud Detection System for monitoring. JMP analysts maintained a Market Outperform rating with a $25 price target, despite the negative impact of foreign exchange rates on the company’s full-year guidance. They emphasized Sportradar’s resilience and diversified business model, projecting a 15% compound annual growth rate in revenue and a 27% increase in EBITDA through 2027.

These recent developments underscore Sportradar’s strategic initiatives and financial stability, positioning the company for continued growth in the sports data industry.

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