In a report released today, Steven Pizzella from Deutsche Numis reiterated a Buy rating on Sportradar Group AG (SRAD – Research Report), with a price target of $13.00.
Steven Pizzella has given his Buy rating due to a combination of factors that position Sportradar Group AG as a strong investment opportunity. The company’s first-quarter results for the year 2024 surpassed expectations, with revenues and adjusted EBITDA significantly outperforming Deutsche Numis’s own forecasts and the consensus estimates. This positive performance was largely driven by growth in the U.S. market and international betting revenue. Additionally, the company’s decision to raise its revenue and adjusted EBITDA guidance for the year 2024 indicates confidence in its business fundamentals and future growth prospects, including the successful adoption of its ATP and NBA products.
Moreover, Sportradar’s reaffirmation of its sports rights outlook and its plans to commence a $200 million share repurchase program reflect a strong balance sheet and an assertive approach to capital allocation. The firm’s management also projects an increase in operating leverage and long-term adjusted EBITDA margins, which suggests efficiency improvements and robust financial health looking forward. These elements, coupled with Sportradar’s position as a pure-play entity in the expanding sports betting market and its majority subscription-based B2B operating model, underscore the reasons for Steven Pizzella’s optimistic Buy rating.
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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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- Sportradar Reports Growth and Leadership Changes
- SRAD Earnings this Week: How Will it Perform?
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- Sportradar to Participate in the J.P. Morgan Global Technology, Media and Communications Conference on May 21
- Sportradar Group AG Unveils Strategic Reorganization
