Sportradar stock target raised to $25 at Craig-Hallum

On Monday, Sportradar Group AG (NASDAQ:SRAD) shares received a boost from Craig-Hallum, as the firm’s analyst Ryan Sigdahl increased the price target from $20.00 to $25.00, while reiterating a Buy rating on the stock. The raise in price target reflects the analyst’s confidence in the company’s continued momentum, both in its business operations and stock performance. The stock, currently trading at $21.77, has shown remarkable strength with a 107% return over the past year. InvestingPro data reveals 18 additional investment insights for this stock, including key valuation metrics and growth indicators.

The uplift in valuation comes after Sportradar announced on Friday an extension and expansion of its exclusive partnership with Major League Baseball (MLB) through 2032. This deal complements Sportradar’s already extended major US contracts with the National Basketball Association (NBA) and the National Hockey League (NHL), which are now set to run past 2030. The company’s strong market position is reflected in its robust financial health, maintaining more cash than debt on its balance sheet and a healthy current ratio of 1.53.

Sigdahl noted that Sportradar is well-positioned to benefit from favorable sports outcomes in Europe for the fourth quarter. Moreover, the company is expected to be shielded from the NFL-related customer-friendly sports results in the US during the same period. These factors contribute to the analyst’s positive outlook on Sportradar’s prospects.

Looking ahead, Sportradar is planning to host an investor day on April 1st, which could provide further insights into the company’s strategic direction and potential growth opportunities. The analyst expressed enthusiasm for the upcoming event, citing it as an additional catalyst for the stock.

In summary, the price target adjustment to $25.00 from the previous $20.00 is based on applying a 20 times EV/EBITDA multiple to the company’s 2026 estimates, signifying an optimistic view of Sportradar’s future earnings potential.

In other recent news, Sportradar Group AG has expanded its partnership with Major League Baseball (MLB) and is set to enhance MLB’s scouting capabilities. The renewed agreement with MLB grants Sportradar exclusive rights to distribute MLB’s official data and audiovisual content, and will also see MLB receive an equity stake in Sportradar. The company’s collaboration with MLB will extend into the development of AI-driven products aimed at creating personalized fan experiences.

Sportradar’s financial performance has also been strong, with third-quarter revenues showing a 27% year-over-year increase. The company raised its full-year revenue and adjusted EBITDA guidance, indicating a positive outlook for its future performance.

JMP Securities has maintained its Market Outperform rating for Sportradar with a price target of $19.00, while Citi has increased its price target from $18.00 to $20.00, retaining a Buy rating. Both firms have highlighted Sportradar’s strong position in the sports betting industry and its ability to generate significant free cash flow.

These recent developments underline Sportradar’s continued growth and strategic partnerships in the sports technology industry.

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