Sportradar is one of few profitable listed sports betting companies with good growth opportunities due to exposure to the rapidly growing U.S. market, said Deutsche Bank.
The firm has initiated coverage of the newly listed company with a “buy” rating and a share price target of $28, which is about 20 percent higher than current levels. Sportradar made its market debut on Sept. 14th.
“In the near to medium term, we believe SRAD gives investors, who are interested in gaining exposure to the rapidly growing sports betting industry, a pure play way to get leverage to the theme through a profitable, majority subscription-based, high growth, B2B operating model,” it said.
Deutsche Bank said the company is in a unique position with exposure to the entire sports betting vertical, including pre-match and in game live data and odds, sports betting technology, and other business lines, such as ad services and AV.
“Rather than directly competing with the large B2C sports betting operators in the expensive race for retail wallet share, SRAD is a beneficiary of the billions of dollars being invested to grow the market, and has relationships with the majority of the large B2C companies, as it becomes an integral part of their operations.”
The bank also notes that Sportradar is different from many other U.S. listed sports betting participants by the fact that it is one of few who are currently profitable, a stark contrast to the majority of other sports betting segments, particularly the large B2C operators.