Sportradar Group AG (SRAD) PT Lowered to $18 at BTIG
BTIG analyst Clark Lampen lowered the price target on Sportradar Group AG (NASDAQ: SRAD) to $18.00 (from $23.00) while maintaining a Buy rating.
The analyst commented, "This morning, Sportradar reported Q1 results that fell short of both our and consensus expectations due to lighter marketing revenue and results headwinds that impacted Managed Betting Services revenue. Marketing pressure was consistent with what we heard from the BetMGM team on 4/14 (Neutral; recap here) and we highlighted Feb. results headwinds for our int'l B2C coverage over the last two weeks (see here and here). Despite the ~€14M/4% miss vs. our Q1 estimates, 2026 guidance was reiterated with greater expected revenue contributions from Prediction Markets and IMG offsetting the Q1 shortfall and softer core sportsbook trends. Digging into guidance and swing factors for the balance of the year, we previously framed PM contribution scenarios of $35M/$52M/71M for the year (see preview here), but would note that the lower end of that range seems more plausible given timing. In a scenario where PM contributions land in the $35-55M range (€30-44M EUR) with a slight bump to our IMG forecast (+€5M to €145M), the lower half of SRAD's revenue guidance equates to +8-10% organic B&GC growth, which is similar to the top-line growth we currently model for the US sportsbooks. As a result, we're still comfortable with guidance and see plausible scenarios for SRAD to hit the upper half of the range, if PM or core sportsbook marketing contributions are greater than we currently expect; however, we would acknowledge that more levers are being pulled to meet the same numbers with a softening underlying organic read (previously +LDD)."