Sportradar Stock Soars As Analyst Sees 15% Growth, AI Upside

BofA Securities analyst Shaun C. Kelley upgraded Sportradar Group SRAD from Underperform to Buy, raising the price forecast to $28 from $12.

Kelley writes that the decision to upgrade Sportradar was driven by three main factors: growing confidence in the company's revenue trajectory, improved clarity on costs and potential for margin expansion, and additional upside from its IMG Arena deal, as well as increasing integration of AI. While risks remain—particularly limited visibility outside the U.S. and a relatively high valuation—the analyst highlights that the company is well-positioned.

The primary concern had been that rising sports rights costs would weigh on margins and cash flow, but recent contract renewals in 2023 and 2024 appear to have alleviated that pressure, Kelley notes.

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With strong revenue trends and continued cost control, the analyst projects that margins will improve steadily in the coming years, making the recent uptick in the stock more likely to be sustained.

According to Kelley, Sportradar’s latest Analyst Day guidance points to a projected compound annual growth rate of approximately 15% through 2027.

This outlook is underpinned by an expected 10% baseline market expansion, along with gains from increasing its take rate through product upselling to existing clients.

A comparison with global B2C gaming companies reveals that Sportradar is growing in tandem with the U.S. market and even outperforming broader international trends, which suggests that the company can maintain mid- to high-single-digit organic growth outside the U.S. despite “market maturity” abroad.

The analyst sees further upside potential from the recent IMG Arena acquisition and broader adoption of AI.

These opportunities could unlock new revenue streams by leveraging Sportradar's extensive data assets to benefit sports leagues, media outlets, and bettors, while also driving efficiencies and cost savings in data collection and software operations.

Kelley raised EBITDA projections for Sportradar by 6% for 2025 and 10% for 2026, reflecting improved confidence in the company's financial trajectory.

However, the analyst also flagged a few ongoing risks, including limited geographic and customer transparency outside the U.S., which could affect predictability in international performance.

Price Action: SRAD shares are trading higher by 7.61% to $24.79 at last check on Tuesday afternoon.

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