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