Price Target Adjustment#
Macquarie has lowered its price target for Sportradar Group AG (NASDAQ:SRAD) from $30 to $24 while keeping an Outperform rating on the stock. Currently, Sportradar shares are trading at $12.35, close to their 52-week low of $11.66, following a significant drop of 27% over the past week.
Revenue and Earnings Performance#
The company reported first-quarter fiscal 2026 revenue growth of 11% and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) growth of 12% year-over-year. However, these figures fell short of analyst expectations by 4% and 7%, respectively. Factors such as foreign exchange challenges, the timing of marketing expenses, and outcomes favorable to players negatively impacted these results.
CEO's Share Purchase#
In a show of confidence, Sportradar’s CEO plans to buy $10 million worth of shares in the open market. Analysis suggests that the stock may be undervalued at its current price, indicated by a low PEG (Price/Earnings to Growth) ratio of 0.17, which is a metric used to evaluate a stock's valuation relative to its growth rate.
Analyst Reactions#
Following the disappointing earnings report, several analysts adjusted their price targets for Sportradar. Guggenheim lowered its target from $35 to $30 but maintained a Buy rating, attributing the revenue miss to similar factors as Macquarie. Needham also revised its target down to $19 from $27, citing ongoing uncertainty but still holding a Buy rating on the stock. These adjustments reflect the cautious sentiment among investors and analysts after Sportradar's recent financial performance.