UPDATE: Nomura Reiterates on Manchester United on Increased Champions League Income Growth

In a report published Friday, Nomura analyst Matthew Walker reiterated a Neutral rating on

, and raised the price target from $18.00 to $18.50. In the report, Nomura noted, “The company clarified that, all else being equal (no increases in other countries and no change to revenue formula), the positive impact on the income for Manchester United from the market pool under the new contract would be over GBP 10m in FY2016. We have increased our total company income growth from Champions League in FY2016 from 27% to 60% as a result. A small portion of this we have offset using additional wage growth (14% vs 12%), but this still leads to an increase in our EBITDA estimate from GBP 171m to GBP 180m (+6%) in FY2016. Accordingly, our target price is raised from USD 18.0 to USD 18.5.” Manchester United PLC closed on Thursday at $16.09.