Manchester United Plc (NYSE:MANU) has been granted a ‘Buy’ rating by UBS analysts on confidence the football club will rise to the top ranks of English and European football once more.
UBS highlighted Man U’s “superior revenue base” in a note, adding the club should eventually compete for the top spots the the Premier League and Champions League.
“The new management and its focus on cost management should support investment to improve sporting performance as well as a return to net profitability,” UBS said.
“We see the real upside to the equity story linked to an eventual return to the more lucrative Champions League, a scenario which could potentially drive revenues to £800 million.”
Man U appointed Ruben Amorim as head coach in early November, after struggling under former manager Erik Ten Hag.
“The new manager provides a potential turning point for change, albeit one which may take time to materialise,” UBS added.
“With a superior revenue base than most peers and thus an ability to spend more on talent, we assume performance will turn around leading to a Champions League participation from the 2028 season.”
UBS also pointed to longer-term plans for full stadium redevelopment at Old Trafford, which analysts suggested could drive incremental revenue growth of around £200 million.
A ‘Buy’ rating was granted, alongside a $23 share price target as a result.
Shares were up 1.6% at $17.96 in early trading in New York on Tuesday.
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