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SBD Global/June 5, 2013/Finance

ManU Shares Expected To Improve Due To New TV Rights, Merchandise Deals

ManU shares could spike due to increase in TV rights.
ManU shares "could be set to perform well" over the next 12 months as the club "ushers in a new era of management," according to Matthew Kanterman of MSN MONEY. ManU "is set to close out its first fiscal year as a publicly traded company in the U.S. on June 13 and should report both its fiscal fourth-quarter and annual results soon after." The company is expected to report a loss of $1.50 per share for the quarter, but profit of $22.94 for the fiscal year. However, earnings "are expected to grow substantially" through the next 12 months as the forecast for fiscal '14 calls for $45.56 per share, nearly double the '13 EPS. There are several catalysts working in favor of the company. First, the EPL "enters a new television rights deal" with BSkyB and BT. The deal, beginning in the '13-14 season, is worth $4.7B. Another key catalyst for ManU "in the coming year is the chance of a new, more lucrative merchandising deal." As analysts at Deutsche Bank wrote two weeks ago, the company "could see a large increase in merchandising revenue due to Nike needing to renegotiate its kit supplier deal by July 31." Deutsche Bank has a "buy" rating and $21 price target on the stock. A third catalyst the company has working in its favor is the continued reduction of its debt service costs (MSN MONEY, 6/3).
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