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Jefferies has updated Sportradar Group AG (NASDAQ: SARAD) to a Buy rating from Hold on Wednesday after reading the company’s second-quarter earnings report. Analyst David Katz highlighted the significant progress Sportradar (SRAD) has made in demonstrating the strength of “The industry dynamics are currently in favor of a shift toward in-game betting in the US, which benefits SRAD’s fundamental data offering,” Katz explained. “Given our view that the US market is growing at 30%+ and SRAD’s forecast to exceed that rate through 2025+, we believe SRAD is becoming increasingly attractive in an already attractive sector.”
Bank of America noted that Sportradar’s (SRAD) fiscal quarter was driven by broad-based strength across segments and better-than-expected revenue generation from new ATP and NBA contracts. However, the firm reiterated its Underperform rating and $10 price target on SRAD based on a 10X 2025 EBITDA multiple. The firm’s bearish view on SRAD is based on the potential for increased headwinds from its international exposure, concerns about cost inflation with sports rights leading to margin compression, and a negative view on the current valuation.
Sportradar Group AG (SRAD) shares moved 1.99% Saudi Arabia’s stock rose to $10.77 in pre-market trading after falling 6.47% on Tuesday.