UBS reiterates buy rating on Sportradar stock amid favorable rights costs

Published 12/06/2025, 16:10
UBS reiterates buy rating on Sportradar stock amid favorable rights costs

UBS maintained its buy rating and $29.00 price target on Sportradar Group AG (NASDAQ:SRAD) Wednesday, citing the company’s ability to manage sports rights costs effectively. The stock, currently trading at $25.14 and near its 52-week high, has delivered an impressive 121% return over the past year. According to InvestingPro analysis, the company maintains a strong balance sheet with more cash than debt.

The investment firm noted that concerns about bidding wars between Sportradar and Genius Sports (GENI) driving up costs appear less significant now, with Sportradar keeping its renewals at "low to mid single digit" increases.

UBS highlighted potential future cost advantages for Sportradar when former IMG league deals come up for renewal over the next four or more years, though specific timing for contracts like Major League Soccer remains unclear, with the original agreement potentially extending to 2030.

The analysis contrasted Sportradar’s cost management with Genius Sports’ recent two-year NFL extension, which came "at a significantly higher cost than its previous deal."

UBS also pointed out that Genius Sports’ "net change in cash has not been positive for the most part even at the lower expense run rate of their original deal," suggesting Sportradar’s approach to rights acquisition may be more financially sustainable.

In other recent news, Sportradar Group AG reported impressive earnings results, surpassing expectations with a first-quarter revenue of $311 million and an adjusted EBITDA of $59 million. The company maintained its fiscal year 2025 guidance, forecasting revenue of at least $1.273 billion and an adjusted EBITDA of $281 million. Sportradar has also secured exclusive betting data rights for the FIFA Club World Cup 2025, enhancing its sports data offerings. JPMorgan raised the price target for Sportradar to $26, noting the company’s strong revenue growth and potential for margin expansion. Similarly, Needham increased their price target to $28, citing Sportradar’s robust performance and strategic initiatives in the online sports betting and iGaming sectors. JMP analysts maintained a $25 price target, highlighting the company’s resilience against foreign exchange impacts and its long-term financial projections. Benchmark reiterated a Buy rating with a $30 price target, emphasizing Sportradar’s exclusive rights to major U.S. leagues and its strong financial position. The potential acquisition of IMG ARENA could further boost Sportradar’s revenue and adjusted EBITDA, contributing to its growth trajectory.

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