US$23.43: That's What Analysts Think Sportradar Group AG (NASDAQ:SRAD) Is Worth After Its Latest Results

It's been a pretty great week for Sportradar Group AG (NASDAQ:SRAD) shareholders, with its shares surging 13% to US$16.65 in the week since its latest annual results. It was an okay result overall, with revenues coming in at €561m, roughly what the analysts had been expecting. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Sportradar Group

Taking into account the latest results, the consensus forecast from Sportradar Group's eleven analysts is for revenues of €678.1m in 2022, which would reflect a sizeable 21% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 266% to €0.15. Before this earnings report, the analysts had been forecasting revenues of €672.5m and earnings per share (EPS) of €0.16 in 2022. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target fell 8.1% to US$23.43, with the analysts clearly linking lower forecast earnings to the performance of the stock price. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Sportradar Group, with the most bullish analyst valuing it at US$29.86 and the most bearish at US$17.03 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Sportradar Group's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 21% growth on an annualised basis. This is compared to a historical growth rate of 39% over the past year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 17% annually. Factoring in the forecast slowdown in growth, it looks like Sportradar Group is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Sportradar Group. Happily, there were no real changes to sales forecasts, with the business still expected to grow in line with the overall industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Sportradar Group's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Sportradar Group going out to 2024, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Sportradar Group .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.