New AI Sports Bet After Bank of America's Double Upgrade Price Target
I'm buying this big-data sports name as it faces a major shares purchase agreement.
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There is upbeat market action on Thursday morning as chatter about trade deals with India and others is picking up steam. The hope is that a general framework will be developed that will allow quick deals with the European Union and many other countries.
Breadth is running strong again at better than two-to-one positive. Technology and the Magnificent Seven MAGS are leading mainly due to the strength of semiconductors SMH, which is up about 3.6%.
I’m staying focused on stock picking and looking to put more money into my work. As I’ve mentioned several times lately, I’m very heavily weighted in the biotechnology sector, which I believe is close to a major cycle change. We have already seen a good bounce and relative strength, but if this is a major turn, there will be far more to come.
A new name that I’m adding to a different group today is Sportrader Group AG SRAD. Sportradar Group AG is a Swiss-based global sports technology company that provides data, content and technology solutions for the sports, media and betting industries.
The company offers a sports data and content service where it collects, processes and distributes real-time sports data for over 890,000 events annually across more than 90 sports. It serves as the official data provider for major organizations such as the NBA, MLB, NHL, NASCAR, FIFA, UEFA and ITF. Its data powers media companies, sports federations, fantasy sports platforms and betting operators, providing detailed statistics, live scores and odds.
SRAD also offers betting and gaming solutions under the Betradar brand. This is a business-to-business (B2B) solution for sports betting operators, including pre-match and live odds, virtual sports, managed betting services and trading tools. It partners with over 900 betting operators globally, providing odds for thousands of games across 40 sports using mathematical models.
SRAD also has betting integrity services, media and fan engagement services, as well as sports performance solutions. It employs over 3,900 people across 29 offices in 20 countries, including New York, London and Singapore. Its clients include sports federations, betting operators, media companies and technology platforms.
The company is expecting EPS of $0.35 in 2025 and growth of 58% to $0.55 in 2026.
Sportrader is a bet on sports and has recently received several strong analyst recommendations. Bank of America recently gave it a double upgrade to buy and a target of $28, citing confidence in revenue, cost visibility and margin leverage, and AI adoption.
Benchmark named SRAD a “Top Idea” with a $30 target, and BTIG initiated coverage with a $28 target. Overall, there are 12 buy ratings with an average target price of $27.50.
The reason the stock caught my eye on Thursday is that it is trading down about 5% on news of a secondary offering of 23 million shares priced at $22.50. The shares are primarily from an affiliate of the Canadian Pension Investment Board. The company is not selling any shares, so it is not dilutive. In fact, there is an agreement with the underwriters to purchase 3 million shares. So this is actually a contraction in shares, and a sell-off on the news appears unwarranted.
I’m starting a position today and will be trading it aggressively as it develops.
At the time of publication, DePorre was long SRAD.
