Sports technology provider Sportradar could see major gains ahead on the back of global growth in online sports betting, according to Bank of America. The bank double upgraded the St. Gallen, Switzerland-based company to buy from underperform and more than doubled its price target to $28 from $12, implying more than 21% upside from Monday’s close. The American depositary receipts traded on Nasdaq have already seen big gains, soaring 42% in 2025 and 96% over the past year. “Our primary concern had been the pressure of sports rights costs on margins and cash flow, but SRAD should see increasing margins the next several years following multiple rights renewals in ’23-24,” Bank of America analyst Shaun Kelley wrote Tuesday. “This coupled with consistently strong revenues and cost discipline should allow the recent rerating in shares to be sustainable.” SRAD 6M mountain Sportradar over past six months. Kelley noted an implied compound annual growth rate of at least 15% through 2027. The analyst sees international organic growth in the mid-single digits to high single digits, outperforming international trends, and expects Sportradar to grow “in lock step” with the U.S. market. Alongside revenue growth, increasing “cost visibility” and margin leverage also underpin Kelley’s bullish view, with underlying profit margin expansion “possible even if factoring in a step-function rights costs increase in coming years.” The analyst also pointed to the “option value” from the IMG Arena transaction and artificial intelligence adoption as additional growth catalysts. Bank of American expects the IMG deal, scheduled to close in the fourth quarter this year , to add $125 million in revenue and nearly 11 percentage points of growth. Sportradar announced the acquisition of IMG Arena in March, adding to its data rights portfolio, including 70 rightsholders and 39,000 events including Wimbledon, the U.S. Open, Roland-Garros, Major League Soccer and the Professional Golfers’ Association Tour. “IMG seems like both a tactical win and opportunity to leverage SRAD’s existing infrastructure, but also a recognition that the competitive rights landscape is rationalizing/consolidating,” Kelley said. Kelley’s call joins 11 other analysts with a strong buy or buy rating on Wall Street, with only two at a hold, according to LSEG. The consensus price target stands at nearly $26, reflecting more than 12% upside potential. The stock rallied as much as 9% in early trading Tuesday, touching $25.09 and driving up its market capitalization to $6.9 billion. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
