Sportradar surges after BofA double upgrades on global online sports betting growth

Shares of Switzerland-based Sportradar Group SRAD.O up 8.5% at $24.97 on Tues after BofA Global Research upgraded sports data provider to 'buy' from 'underperform' and hiked its PT from $12 to $28

SRAD shares surged as much as 12.3% to $25.85 on the session to highest levels since Sept 2021

BofA said it has higher conviction in SRAD's rev outlook, pointing to co's "ability to participate in continued global strong online sports betting growth"

The analysts said they see potential upside from recently announced IMG Arena transaction and artificial intelligence opportunities for both costs and revs

Margins should expand over the next several years following multiple rights renewals in 2023-2024, including those with the NHL, NBA and MLB

Last month, SRAD entered into a deal to acquire IMG Arena and its portfolio of sports betting rights from Endeavor Group Holdings

Now, of 15 brokerages covering SRAD, recommendation breakdown is 13 'strong buy" or "buy" and 2 "hold" ratings, per LSEG data

Median PT of $27 unchanged from a month ago but up from $19.50 on Jan 22

With move on Tues, stock up 44% YTD and up roughly 160% over the past 12 months

Also in Mar, Endeavor Group completed its acquisition by Silver Lake. While becoming private, Endeavor retained controlling stake in TKO Group Holdings TKO.N, whose assets include the WWE and UFC