Sportradar Under Investigation, Shares Plunge 22%

Jefferies analyst David Katz downgraded Sportradar to Hold from Buy with a price target of $14, down from $30. The stock could be range-bound in the near term as the company's business practices face scrutiny, the analyst tells investors in a research note. Jefferies says the debate around Sportradar's revenue quality has widened, driven by "unsubstantiated questions" regarding customer management and controls. More recently, Callisto Research and Muddy Waters have raised broader claims about the company, adds the firm. Jefferies does not advocate a view on the outcome, but expects any process is likely to establish a "significant overhang" on the shares for an extended time. It expects the stock's valuation "to be compressed."