BofA’s Hartnett says concentrated U.S. stock returns are likely to persist
Investing.com - Citi has raised its price target on Sportradar Group AG (NASDAQ:SRAD) to $34.00 from $27.00 while maintaining a Buy rating on the stock. The company, currently valued at $8.79 billion, has demonstrated remarkable momentum with a 167% return over the past year. According to InvestingPro analysis, the stock is trading near its 52-week high of $29.48.
The price target increase reflects Sportradar’s pending acquisition of IMG ARENA, which Citi expects to close in the fourth quarter of 2025. The firm notes that Sportradar will not pay any financial consideration to acquire the asset and will instead receive approximately $225 million from IMG ARENA.
The $225 million payment consists of approximately $125 million in cash and up to $100 million in cash pre-payments made to certain sports rights holders, according to Citi’s analysis.
Citi estimates IMG ARENA will contribute approximately €130 million in incremental revenue to Sportradar in 2026 following the completion of the acquisition.
The research firm continues to favor Sportradar for three key factors: its competitive position, its role within the sports betting value chain serving global online sports betting operators, and the underlying growth in the global sports betting market.
In other recent news, Sportradar Group has seen several notable developments. Guggenheim adjusted its quarterly revenue and EBITDA forecasts for Sportradar due to foreign exchange challenges, but maintained its full-year outlook. The firm expects second-quarter revenue of €315 million and EBITDA of €55 million, while projecting full-year revenue of €1,279 million and EBITDA of €283 million. Jefferies also adjusted its estimates, citing foreign exchange headwinds, with second-quarter 2025 revenue now at €313 million and adjusted EBITDA at €56 million. For full-year 2025, Jefferies forecasts revenue of €1.266 billion and adjusted EBITDA of €287 million.
Additionally, Truist Securities initiated coverage of Sportradar with a Buy rating, emphasizing the company’s significant role in the sports betting industry and a strong EBITDA growth rate. Sportradar is also expanding its presence in Brazil’s newly regulated betting market, where it has opened its first office and secured partnerships with major sports organizations. Furthermore, JPMorgan raised its price target on Sportradar, highlighting the company’s success in securing sports data rights contracts and its strategy to increase wallet share through higher margin products. These recent developments reflect the company’s strategic moves and analyst optimism regarding its future growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.