Sportradar share price target raised to $16 on strong guidance
SRAD
+11.30%
Add to/Remove from Watchlist
Add to Watchlist
Add Position
Position added successfully to:
Please name your holdings portfolio
Type:
BUY
SELL
Date:
Amount:
Price
Point Value:
Leverage:
1:1
1:10
1:25
1:50
1:100
1:200
1:400
1:500
1:1000
Commission:
Create New Watchlist
Create
Create a new holdings portfolio
Add
Create
+ Add another position
Close
On Thursday, Sportradar Group AG (NASDAQ:SRAD) received an updated share price target from Needham, marking an increase to $16.00 from the previous $15.00. The firm has reiterated its Buy rating on the stock.
The revision follows Sportradar’s fourth-quarter earnings for 2023, which surpassed expectations. In addition to the earnings report, the company confirmed its revenue and adjusted EBITDA growth guidance of over 20% for the estimated 2024 fiscal year. Sportradar has also announced a new stock buyback program.
The price target set by Needham reflects a 10 to 15 times multiple of the firm’s estimated adjusted EBITDA for the year 2025. Needham’s positive outlook is based on the anticipation that Sportradar will achieve a compound annual growth rate (CAGR) of 20% in adjusted EBITDA over the next few years.
This growth is expected to be fueled by revenue increases in the estimated 2024 fiscal year, followed by gains in operating leverage in 2025 and 2026. These projections come after a significant investment in sports rights by the company this year.
Sportradar’s financial health appears robust, with the company not only delivering a strong performance in the fourth quarter of 2023 but also confidently projecting continued growth. The guidance for over 20% growth in revenue and adjusted EBITDA for the estimated 2024 fiscal year demonstrates management’s belief in the company’s strategy and market position.
The upgrade to Sportradar’s price target by Needham, along with the maintained Buy rating, suggests that the firm sees a strong investment opportunity in Sportradar shares. Needham’s analysis indicates that the company is well-positioned for sustained growth, driven by strategic initiatives and market developments in the coming years.
