Sportradar stock price target raised to $32 by Goldman Sachs on margin expansion

Published 06/08/2025, 11:22
Sportradar stock price target raised to $32 by Goldman Sachs on margin expansion

Investing.com - Goldman Sachs raised its price target on Sportradar Group AG (NASDAQ:SRAD) to $32.00 from $31.00 while maintaining a Neutral rating following the company’s Q2 2025 earnings report. The stock has shown remarkable momentum, delivering a 152.86% return over the past year, according to InvestingPro data.

The firm noted that Sportradar’s Q1 revenue was in line with expectations, but adjusted EBITDA exceeded forecasts, with management indicating that fiscal year 2025 margins would expand due to leverage across all expense items, including sports rights. InvestingPro analysis shows the company maintains strong financial health with a "GREAT" overall score, supported by robust revenue growth of 23.07% in the last twelve months.

Goldman Sachs highlighted that the deceleration in Rest of World revenue was attributed to comparative dynamics and quarter-to-quarter volatility in marketing campaigns by sportsbooks within the Marketing & Media Services segment.

The research note pointed to Sportradar’s progress in driving monetization through expanded partnerships and product adoption, specifically mentioning strengthened Bundesliga partnerships, expanded micro markets sports coverage, and strong adoption of the company’s MTS product.

Goldman Sachs maintained its Neutral rating on Sportradar, citing "a more balanced risk/reward skew at current levels over the next 12-months," while the firm’s analysts expressed positive sentiment about the company’s 4Sight product, which is scheduled for an enhanced version launch in the second half of 2025.

In other recent news, Sportradar Group AG reported record second-quarter revenue of €318 million, marking a 14% increase year-over-year. The sports technology company also raised its full-year outlook, attributing this to continued operational momentum. Profit for the period reached €49 million, a substantial improvement from a €2 million loss in the same quarter last year. This profit boost was driven by strong operating results and a €54 million foreign currency gain. Adjusted EBITDA saw a 31% rise to €64 million, with margins expanding to 20.1%. These developments highlight the company’s strong performance across its business segments. Sportradar’s recent earnings release has caught the attention of investors and analysts, although specific analyst upgrades or downgrades were not noted in the report.

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