Sportradar Group AG (SRAD) is a Switzerland-based sports technology company that provides sports data services to betting and media industries in the U.S., UK, Switzerland, Malta, and internationally. Moreover, it provides solutions for the entire sports betting value chain - including traffic generation, advertising technology, collection, extrapolation of data and odds, and so on. The company also provides sports entertainment, solutions, gaming, and live streaming for betting.
Founded in 2001 and based out of New York, its headquarters are in St. Gallen, Switzerland. With a market cap of about $12 billion, it's a much smaller player than Draftkings (DKNG), at around $37.7 billion.
SRAD stock is down 17.5% in the last 52 weeks and 3.9% YTD - but there are signs the worst could be over, with the shares up 15.8% from the lows set earlier this month.
Sportradar Stock Spikes on Guidance Hike
Sportradar stock has been on the upswing since the company released its Q1 results last week, on May 15.
Specifically, SRAD spiked more than 10% on the day as investors cheered record revenue of €266 million, a 28% increase YoY. The Adjusted EBITDA was up 29% to €47.2 million, or breakeven on a per-share basis, bolstered by strong revenue growth and operating efficiency.
Speaking on the results, Sportradar CEO Carsten Koerl said, “This quarter, we saw broad-based strength across our product portfolio including strong client adoption of our ATP and NBA product offerings. In light of our strong business fundamentals, we are raising our full-year outlook and are commencing purchases under our share repurchase program.”
More to the point, management upped its 2024 revenue forecast to €1.06 billion, indicated expected growth of 21% year over year. Likewise, Sportradar now anticipates full-year adjusted EBITDA of €202 million, also implying 21% annual growth. The newly raised 2024 forecast topped analysts' expectations.
On the Q1 earnings call, Koerl also addressed the addition to the Sportradar C-suite of Behshad Behzadi as Chief Technology Officer and Chief AI Officer:
"I'm super proud and very excited that we could convince a professional like Behshad to join our company, knowing that he was really the driving force behind Google's European activities in AI, driving a product like Google Lens and a couple of other things… So, it's all about to build the engine to ingest massive data on all levels, the fan data, the liquidity information, which is there, and of course, the real-time sports data and then use this in the products to generate the value for our clients."
How Do Analysts Rate SRAD?
Analysts are bullish on the sports betting stock, with a consensus “Moderate Buy” rating among the 11 analysts in coverage. Six analysts rate it a “Strong Buy,” 1 rates it a “Moderate Buy,” 3 have a “Hold” rating, and 1 has a “Moderate Sell” rating.
What's more, the Street-high price target of $21.00 signifies an upside potential of 97.7% from current levels.
The mean price target is a little more down to earth, at $14.50 - but still suggests a healthy upside potential of 36.5% for SRAD from here.
On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
