On Thursday, Benchmark raised the price target for Sportradar Group AG (NASDAQ: SRAD) shares to $12 from the previous $10, while maintaining a Buy rating.
The revision follows Sportradar's announcement of a record-breaking first quarter in 2024, which saw a significant 28% increase in quarterly revenue compared to the same period last year.
The company's impressive revenue boost has been accompanied by a 29% increase in Adjusted EBITDA. In response to these positive results, Sportradar has updated its full-year 2024 outlook to reflect the continued growth trajectory of its business operations.
Sportradar's recent leadership changes include the hiring of a new CFO and Chief Technology & AI Officer, positions that are expected to strengthen the company's strategic direction.
Additionally, Sportradar has initiated the repurchase of shares under its $200 million buyback program, demonstrating a strong belief in its financial stability and future growth potential.
The revised price target of $12 is based on a multiple of 3.0 times the estimated full-year 2024 revenue of $1,115 million, plus net cash per share. This multiple has been increased from the previous 2.5 times, reflecting the firm's confidence in Sportradar's financial outlook.
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