Buy the Atlanta Braves tracking stock since it will likely be bought by a billionaire, analyst says

Published Tue, Apr 2 202410:17 AM EDTUpdated Tue, Apr 2 202411:38 AM EDT

Jesse Pound @/in/jesse-pound @jesserpound

Investors excited for the return of baseball season can buy shares now in one of the sport's top franchises, but that option may be off the table by next season's Opening Day, according to Rosenblatt Securities. Analyst Barton Crockett hiked his price target on Atlanta Braves Holdings by more than 10% to $53 per share, saying in a note to clients Tuesday that the team could soon become a buyout target. The baseball franchise was previously one of the holding companies under John Malone 's Liberty Media umbrella, along with other businesses such as Formula One and Sirius XM . The Braves slice was spun off last summer, starting the clock on a potential sale. "We assume that the Braves are likely to be taken private by a billionaire once properly tax-seasoned. That's at least a year, and potentially two years, after the spin-off of the Braves from Liberty Media on July 17, 2023," Crockett wrote in the report to clients. Rosenblatt has a buy rating on the stock. The value of sports franchise in the U.S. has soared over the past two decades. That is largely due to the appeal of live sports events as valuable media assets, though there is some concern about how the struggles of regional sports networks will hurt the values of franchises going forward. Sports business publication Sportico estimates the value of the Braves — who have finished first in the National League East the past six seasons — at a little more than $3 billion, up 24% over the past year, according to Rosenblatt. Whenever the Braves are sold, the price could be even higher than that, Crockett said. "In our new, updated price target, we assume a 10% premium for the Braves in 2025 to the 2024 Sportico valuation, to reflect normalized inflation of pro team values," the Rosenblatt report said. Shares of Atlanta Braves Holdings closed at $38.79 per share on Monday, more than 36% below the Rosenblatt price target. The stock is down about 2% year to date. Meanwhile, the Braves are in first place again after playing four games in the early 2024 season. Last season's .642 winning percentage was the team's highest since 1998 , according to Baseball Reference. BATRK YTD mountain The tracking stock for the Atlanta Braves has struggled in 2024. With high valuations and unique business models, sports teams are often sold to the ultra wealthy when they change hands. For example, Carlyle Group co-founder David Rubenstein recently struck a deal to buy the Baltimore Orioles, reportedly for more than $1.7 billion . Last year, mortgage executive Mat Ishbia bought the National Basketball Association's Phoenix Suns for $4 billion. Atlanta Braves Holdings includes not only the baseball franchise, but also some real estate development around the team's baseball stadium in suburban Atlanta.