BTIG Downgrades Sportradar Group AG (SRAD) to Neutral

BTIG analyst Clark Lampen downgraded Sportradar Group AG (NASDAQ: SRAD) from Buy to Neutral.

The analyst comments "Yesterday, Sportradar reported 2Q results that fell short of both our and consensus expectations, due to softer Managed Betting Services (lower platform business revenue) and ~€7M of FX headwind. Forecasted full year revenue growth was also cut by 400 bps from +23%-25% FXN to +19%-21% FXN with a combination of factors weighing on both 2026 and 2027 estimates. These factors include: delayed prediction market revenue contributions, as deals took longer than expected to finalize; an inability to offset the 1Q shortfall in advertising revenue; softness in the underlying US market alongside challenging USD/EUR conversion, and increased tax/regulatory headwinds impacting ROW territories (UK, Brazil). Magnifying the top line revisions, 130 bps of margin deleverage (per revised guidance) is anticipated as a result of fixed sports rights costs from IMG, plus additional taxes and legal expenses in new markets (ex: Brazil). Surveying the setup for the balance of the year, Q&A remarks suggest there could still be some risk to back half revenue from prediction contributions if an NBA/Kalshi (Private) agreement fails to materialize. When we dissect guidance to exclude our estimate of IMG contributions and modest prediction contributions ("tens of millions" defined as +€20M-€30M this calendar year), underlying organic growth trends appear to be landing in the +6.5%-7.5% range for the year vs. +HSD growth exiting Q1 and double-digit growth implied prior to that. While we expect growth to recover in 2027, our estimates still move lower in ’26+ and after several quarters of unfavorable revisions we suspect the market will need to see proof points of success and positive revisions before rewarding SRAD with a multiple premium vs. near-term organic growth. When we reset to a multiple in between the '26/27 organic trajectory, we land at a fair value estimate close to the current level, which leads us to lower our rating to Neutral. "

For an analyst ratings summary and ratings history on Sportradar Group AG click here. For more ratings news on Sportradar Group AG click here.

Shares of Sportradar Group AG closed at $12.34 yesterday.

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