Goldman Sachs Initiates Coverage of Sportradar with Neutral Rating and $31 Price Target

Goldman Sachs initiated coverage of Sportradar with a Neutral rating and $31 price target, citing double-digit revenue growth from the rapid expansion of online sports betting and increasing wallet share. However, the firm views the risk/reward as balanced after the stock's 75% rally YTD.

Goldman Sachs has initiated coverage on Sportradar Group AG (NASDAQ:SRAD) with a Neutral rating and a $31.00 price target, citing strong fundamentals and growth prospects. The investment bank highlighted Sportradar’s expected double-digit revenue growth driven by the rapid expansion of Online Sports Betting (OSB) and increasing wallet share through cross-selling, up-selling, and higher product attach rates [1]. The company’s recent performance supports this outlook, with revenue growing at 23% and achieving an EBITDA of $415 million in the last twelve months.

Goldman Sachs noted that Sportradar and its competitors have secured multi-year agreements with major league and federation partners, providing better visibility into data rights costs and reducing potential volatility around medium-term operating results. The firm projects Sportradar’s EBITDA and free cash flow to compound at approximately 30% over the medium term as the company progresses toward its 2027 targets outlined at its recent Investor Day.

Despite these positive factors, Goldman Sachs highlighted that Sportradar stock has appreciated by approximately 75% year-to-date, with most of that increase coming from multiple expansion, and now trades at a 40% premium to its closest peer on forward estimates compared to historically trading at parity.

In other recent news, Sportradar Group AG has seen a series of developments that are noteworthy for investors. Several financial firms have adjusted their price targets for the company, reflecting its ongoing business activities and potential growth. JMP Securities increased its price target from $25 to $30, maintaining a Market Outperform rating, citing confidence in Sportradar’s growth prospects. Citi also raised its target to $34, noting the pending acquisition of IMG Arena, which is expected to close in the fourth quarter of 2025. Guggenheim followed suit, increasing its price target to $35, while Jefferies set its new target at $32, both firms maintaining a Buy rating.

The UK’s Competition and Markets Authority has begun reviewing the proposed merger between Sportradar and IMG Arena. This regulatory review is part of a standard process to assess the potential impact on market competition. Citi highlighted that the acquisition will not require financial consideration from Sportradar but will instead bring in approximately $225 million from IMG Arena, including cash and pre-payments. Guggenheim and Jefferies have adjusted their revenue and EBITDA forecasts for Sportradar, factoring in foreign exchange headwinds and the anticipated impact of the IMG Arena acquisition. The merger and these financial projections indicate significant developments for Sportradar’s future revenue and earnings.

References:
[1] https://www.investing.com/news/analyst-ratings/goldman-sachs-initiates-sportradar-stock-with-neutral-rating-31-target-93CH-4143102