Sportradar Stock Has More Upside Ahead Says Analyst

Sportradar Stock Has More Upside Ahead Says Analyst

Sportradar (NASDAQ: SRAD) shares are experiencing a remarkable streak, rising nearly 15% in the last month and 24% since the beginning of 2025, yet one analyst thinks this soaring stock still has further potential. 

In a recent report for clients, Deutsche Bank analyst Steven Pizzella maintained a “buy” rating on the sports betting data provider and raised his price target to $24 from $19. That suggests a potential increase of approximately 13% from Tuesday’s closing value. 

“Overall, we continue to believe SRAD gives investors, who are interested in gaining long-term exposure to the rapidly growing sports betting industry, a pure-play way to get leverage to the theme, through a profitable and majority subscription-based (~70% of revenue), business-to-business (B2B) operating model,” writes Pizzella.

In other words, Sportradar and competitor Genius Sports (NYSE: GENI) offer data services to sportsbook operators and do not interact directly with bettors. Consequently, they lean more towards technology than consumer cyclical firms, offering investors a degree of protection from frequently fluctuating discretionary spending patterns. 

Sportradar Shares Have Potential for Growth 

Following a prolonged period of trading predominantly steady, Sportradar stock has over doubled in the last year and is currently at its peak since October 2021. 

Two points potentially suggest there’s greater room for improvement. Initially, the shares are priced lower than they were shortly following the September 2021 initial public offering (IPO). Additionally, the firm’s market capitalization stands at only $6.34 billion, suggesting significant potential for expansion. 

Crucially, Sportradar is likewise a financially robust narrative due to its solid balance sheet and clear earnings and revenue outlook from its long-term agreements with customers. 

“Given; 1) one of the strongest growth profiles within our coverage universe, (~20% 3-year adjusted EBITDA CAGR), 2) a strong balance sheet, in a net cash position, 3) increased operating leverage in the out years, 4) key long term contracts, locked in for approximately six plus years on average, and 5) a reasonable valuation, when looked at in terms of SRAD’s growth prospects and comps, we reiterate our Buy rating,” adds Pizzella.

Regarding Sportradar Agreements... 

Sportradar holds long-term agreements with prominent professional sports leagues such as the Bundesliga, Major League Baseball (MLB), the NBA, NHL, and UEFA. The firm recently revealed an extension of the MLB contract, prolonging the deal until 2032. Several of those leagues are also equity investors in Sportradar. 

The transparency suggests that there is low contract risk for the coming years, enabling Sportradar to concentrate on additional growth prospects, Pizzella remarks. 

“Remember, sports rights are amortized on a straight-line basis, over the life of each contract, so there is enhanced visibility into a big portion of the cost basis moving forward and the opportunity to drive incremental operating leverage,” concludes the analyst. “In addition, we note, given SRADs growth, size, and scale, we believe SRAD will be competitive to renew these contracts at accretive terms and will be in a strong position to bid on new contracts.”