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Wednesday - Benchmark analysts have increased the price target for Sportradar Group AG (NASDAQ:SRAD) shares to $30.00, up from the previous $26.00, while maintaining a "Buy" rating on the stock. The firm believes Sportradar is on the brink of an accelerated phase of value creation, underpinned by a robust revenue model, scalable infrastructure, and a growing global demand for its extensive product offerings. According to InvestingPro data, the stock has delivered an impressive 130.89% return over the past year and is currently trading near its 52-week high of $23.73. Based on InvestingPro’s Fair Value analysis, the stock appears to be fairly valued at current levels.
Sportradar has demonstrated consistent growth that outpaces the market, with international revenue growing at an annual compound rate of 20% and U.S. revenue at 54%. The company’s modular product strategy, expansive content portfolio, and client-focused sales approach have allowed for substantial integration in over 130 countries. This strategy has been instrumental in advancing clients through the value chain and boosting revenue per partner. InvestingPro data reveals the company achieved robust revenue growth of 26.09% in the last twelve months, with total revenue reaching $1.15 billion. The company maintains a strong financial position, earning an "GREAT" Financial Health score from InvestingPro, with 14 additional ProTips available to subscribers.
The company has set a goal to achieve 15% compound annual revenue growth up to 2027, aiming to expand its AEBITDA and free cash flow margins by 700 basis points. This anticipated growth is expected to stem from increased automation, improvements in take rates, and broader content monetization. The impending acquisition of IMG ARENA, which is likely to be finalized in the fourth quarter of 2025, is projected to further enhance Sportradar’s revenue and margins by adding significant scale across major live betting sports such as tennis, basketball, and soccer. The company’s current EBITDA stands at $394.17 million, with a healthy current ratio of 1.53, indicating strong operational efficiency.
Benchmark’s analysts have underscored that Sportradar’s current financial guidance does not yet account for the benefits of the IMG ARENA acquisition, which they anticipate will be beneficial to the company’s financials. They also highlighted that investing in Sportradar provides an opportunity to engage with the global gaming ecosystem, while mitigating specific risks faced by direct operators, such as adverse sports outcomes and increasing tax liabilities. As a result of these factors, Sportradar has been added to the EDM Top Ideas list by Benchmark. For a comprehensive analysis of Sportradar’s investment potential, including detailed financial metrics and expert insights, access the full Pro Research Report available exclusively on InvestingPro.
In other recent news, Sportradar Group AG has been the focus of several analyst updates and strategic developments. BTIG analysts initiated coverage with a Buy rating and a $28 price target, highlighting Sportradar’s potential for mid-teens growth and improved margins. This outlook is supported by the company’s acquisition of IMG ARENA, expected to close in late 2025, which could enhance its growth trajectory. Canaccord Genuity also maintained a Buy rating, raising its price target to $32, citing strong growth prospects and a positive financial outlook following Sportradar’s Investor Day.
Guggenheim analysts reaffirmed their Buy rating with a $27 target, expressing confidence in Sportradar’s multi-year financial outlook and its ability to exceed revenue and cash flow expectations. Meanwhile, JMP analysts maintained a Market Outperform rating and a $25 target, acknowledging the company’s realistic financial goals despite potential industry challenges. Sportradar’s Investor Day highlighted its strategic growth plans and financial targets for 2027, including a revenue goal of at least €1.7 billion.
The company aims to leverage its position in the expanding sports betting market, with a focus on product innovation and market expansion. Sportradar’s leadership emphasized its robust position and opportunities for value creation, supported by long-term agreements and a strong industry presence. These recent developments underscore the company’s strategic focus and potential for sustained growth.
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