UBS has recently initiated coverage on two prominent European football clubs, Manchester United and Juventus, with differing evaluations based on their financial health and future prospects.
UBS has given Manchester United a "Buy" rating with a price target of $23 per share. The firm believes that Manchester United's robust revenue base will enable it to return to profitability and improve its performance. The potential for the club to re-enter the Champions League is seen as a significant revenue opportunity.
UBS forecasts that Manchester United will achieve a broadly break-even result over the forecast period, with revenues expected to exceed €500 million. This positive outlook reflects the belief that Manchester United's financial standing will be enhanced.
On the other hand, UBS has given Juventus a "Sell" rating with a price target of €2.90 per share. The firm has concerns about Juventus' limited opportunities for substantial revenue growth, despite its strong on-field performance.
UBS believes that Juventus will struggle to achieve future profitability unless it can secure a sustainable return to the elite ranks of European football or implement significant cost reductions. The firm cautions that the club's lower revenue base compared to its European counterparts may hinder its ability to enhance its financial standing.
UBS forecasts that Juventus will achieve a broadly break-even result over the forecast period, with revenues expected to exceed €500 million. However, the firm emphasizes the challenges Juventus faces in improving its financial health.
The contrasting assessments of Manchester United and Juventus by UBS reflect the increasing intertwining of financial health and on-field success in the football industry.