Analysts at Canaccord Genuity upgraded Scottish football club Celtic from ‘under review’ to ‘buy’ on Tuesday, pointing to a “brighter” outlook for the firm in 2022.
Canaccord stated Celtic’s full-year 2021 results reflected the impact of the Covid-19 pandemic alongside “a more challenging season” on the pitch.
The Canadian bank said the outlook for the year ahead was more promising, with “a highly regarded new manager” in place playing “attractive” football, successful qualification for the Europa League Group stages and “strong” sell-through of season tickets over the summer.
“With the prospect of potential automatic Champion’s League Group stage qualification for the winners of the SPFL this season, there is added incentive for Celtic to reclaim the title,” said Canaccord, which also issued the stock a 143.0p target price.
“We reinstate forecasts following the relaxation of pandemic-related restrictions and base our assumptions on a targeted break-even outcome post player trading.”
Canaccord did note that there was, of course, still “some pandemic uncertainty”, but its analysts believe that Celtic’s “strong global franchise” and “robust balance sheet” leave it well-placed for the future.
