Stifel on Sportradar Group AG (SRAD): shorts create buying opportunity

Stifel analyst Jeffery Stantial reiterated a Buy rating and $25.00 price target on Sportradar Group AG (NASDAQ: SRAD)

The analyst commented, "Earlier today, two separate short reports were published, both arguing similar conclusions - that SRAD knowingly or turns a blind eye to the distribution of its data/products to illegal operators via re-sellers/aggregators, or contracts meant to only cover legal/regulated markets. Headline findings are similar to prior short reports, though both are far more detailed, include quotes from former employees, and reach curiously similar revenue exposure estimations - which we think explains today's "shoot first, ask questions later" stock reaction. We're still processing and plan to dig in further with our industry checks, though we provide quick thoughts below. Netnet, we agree there may be some, mostly legacy pre-IPO, "bad" revenue exposure that may need to be cleaned up eventually to de-risk regulator penalties. However, based on our calls with formers, we think the quantum is being massively over-estimated. Hence, we view this as buying opportunity with thesis here otherwise intact."

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 $16.84 yesterday.

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