Price Target Cut to $28 Sparks 71.6% Upside Despite Loss and $250M Buyback
Canaccord Genuity cut Sportradar’s price target to $28, implying a 71.62% upside from its recent $12.26 per share, following a 22% share slump after allegations of a misleading business model and a shareholder investigation. The company reported a $0.02 per share loss, missed revenue estimates for the fourth straight quarter despite revenue rising to $405.5 million, and approved a $250 million share repurchase program.
1. Price Target Revision
Canaccord Genuity lowered its price target for Sportradar from $34 to $28, indicating a 71.62% potential upside from the $12.26 share price at the time of publication. The reduced target reflects tempered growth expectations as the company grapples with recent market setbacks.
2. Allegations and Share Price Drop
Sportradar shares tumbled 22% after short sellers accused the company of misleading investors about its core business model, triggering a formal shareholder investigation. The scrutiny has intensified investor concerns and pressured the stock’s valuation.
3. Q1 Financial Performance
The company reported a loss of $0.02 per share, missing the consensus break-even target and reversing from a $0.07 per share profit a year earlier. Quarterly revenue grew to $405.5 million from $327.4 million year-over-year but fell 3.75% short of analyst expectations for the fourth consecutive quarter.
4. $250 Million Share Repurchase Program
In response to sustained pressure on the stock, Sportradar authorized a $250 million share buyback program to support the share price and signal confidence in its long-term prospects. The program is expected to commence in the current quarter.