Needham analyst Bernie McTernan reiterated a Buy rating on Sportradar Group AG (SRAD – Research Report) today and set a price target of $15.00.
Bernie McTernan’s Buy rating for Sportradar Group AG is influenced by several key factors. Firstly, despite experiencing revenue pressures in the third quarter of 2023, McTernan anticipates a positive turnaround in 2024 due to significant cost-reduction strategies. Additionally, the forecasted revenue growth of approximately 20% in 2024, following the first full year of the NBA and ATP contracts, contributes to this optimistic view, even though this growth is based on a relatively small foundation.
The expectation of flat margins, as opposed to the previous downward trend, also influenced McTernan’s positive rating. This change in margins is expected to increase the company’s adjusted EBITDA by around 5%. Another crucial element of McTernan’s rating is the potential outcome of the NBA deal in the US market. With Sportradar having secured agreements with all major US sports books for official data, the associated revenue is predicted to maintain flat year-on-year revenue growth. Despite a potential slowdown in 2025, McTernan expects improved margins due to the straight-line accounting for these rights.
In another report released on November 2, Craig-Hallum also maintained a Buy rating on the stock with a $18.00 price target.
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Sportradar Group AG (SRAD) Company Description:
Sportradar Group AG is a technology platform enabling next-generation engagement in sports, and a provider of B2B solutions to the global sports betting industry. It generates revenue through two primary sources: subscription-based revenue and revenue sharing.
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