In a report released yesterday, Jason Tilchen from Canaccord Genuity maintained a Buy rating on Sportradar Group AG (SRAD – Research Report), with a price target of $32.00.
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Jason Tilchen has given his Buy rating due to a combination of factors that highlight Sportradar Group AG’s strong performance and growth potential. The company reported robust first-quarter results, with significant revenue growth driven by effective upselling to existing customers and increased in-play betting engagement, particularly in the US market. This led to a net dollar retention rate of 122% for the quarter, showcasing the company’s ability to expand its product suite and capture market share.
Furthermore, Sportradar’s advertising services business experienced substantial growth, bolstered by contributions from online casino operators. The company also achieved margin expansion, benefiting from leverage on rights costs after renewing key contracts. Despite facing foreign exchange headwinds, Sportradar reiterated its fiscal year 2025 revenue and adjusted EBITDA guidance, indicating confidence in its growth trajectory. The anticipated acquisition of IMG ARENA is expected to further enhance margins and cash flow, adding to the positive outlook. These factors, combined with a reasonable valuation and strong execution, underpin Tilchen’s Buy rating for Sportradar’s stock.
In another report released today, Needham also reiterated a Buy rating on the stock with a $28.00 price target.