Benchmark Co. analyst Mike Hickey has reiterated their bullish stance on SRAD stock, giving a Buy rating on April 11.
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Mike Hickey has given his Buy rating due to a combination of factors that highlight Sportradar Group AG’s potential for accelerated value creation. The company is poised for growth with a strong revenue model and scalable infrastructure, supported by global demand for its diverse product offerings. Sportradar’s international and U.S. revenues have shown impressive annual growth rates of 20% and 54%, respectively. The company’s strategy of modular products and a client-centric sales approach has facilitated deep integration across over 130 countries, enhancing revenue per partner and moving clients up the value chain.
Looking ahead, Sportradar targets a 15% compound annual revenue growth through 2027, with significant improvements in AEBITDA and free cash flow margins. The anticipated acquisition of IMG ARENA is expected to further boost revenue and margins, particularly in live betting sports. Additionally, Sportradar’s B2B model offers a defensive position against market fluctuations, with stable margins and strong cash generation. These factors, along with a strategic focus on expanding content monetization and leveraging technology, underpin Hickey’s positive outlook and the raised price target of $30.
According to TipRanks, Hickey is a 3-star analyst with an average return of 1.1% and a 56.34% success rate. Hickey covers the Communication Services sector, focusing on stocks such as IMAX, National Cinemedia, and Cinemark Holdings.
In another report released on April 11, BTIG also initiated coverage with a Buy rating on the stock with a $28.00 price target.