Stock tracking World Series favorite Atlanta Braves can rally more than 30%, Rosenblatt says

Published Wed, Sep 6 20233:12 PM EDTUpdated Wed, Sep 6 20233:53 PM EDT

The Atlanta Braves ' new stock is a home-run idea, according to Rosenblatt. Analyst Barton Crockett upped his price target by $7 to $49, with the new estimate implying an upside of 36.6% over Tuesday's close. Crockett also reiterated his buy rating on the shares, which were recently spun off from Liberty Media. "Liberty Braves shares have notched some runs batted in this year," Crockett said. "But, given the history of meaningful premiums being paid relative to standard Sportico-based valuations for sports teams, there's still an opportunity for the shares to homer." The company's spinoff from the media conglomerate controlled by John Malone in July positions the new stock for upside and for a potential acquisition, he said. But Crockett noted any acquisition will likely be at least a year down the road to avoid any tax risks. Major League Baseball's Atlanta Braves have the best record in baseball at 90-47 and are currently the favorite to win the World Series, according to FanDuel. This stock tracks the business prospects of The Braves Group, making it one of the few major U.S. sports teams that are available to the regular investor via the public markets. An acquisition of the now-standalone Atlanta Braves also could happen amid a trend of billionaires shelling out for sports teams. He also pointed to the fact that deals for professional sports teams are typically at a premium to estimated valuations. Crockett said his new price target assumes the company will be acquired in about a year at a 25% premium to Sportico's 2023 valuation of the team at $2.44 billion. His target also incorporates assumptions about real estate value. Sportico is a sports business publication. The team's success can also help get a premium purchase price, he noted. That would allow the buyer to pay for the team without needing to spend more out of the gate to make it better. Fans play a role, too, in the brand's ability to "fetch a premium." Crockett pointed to the growing market of media and supporters in the Southeast. That comes as the MLB property itself becomes stronger as rule changes have sped up the game. The stock's K shares have underperformed the market this year, up just under 12% since beginning trading. BATRK ALL mountain The K share's performance — CNBC's Michael Bloom contributed to this report.