Buy this soccer stock despite FIFA scandal?

Published Thu, Jun 4 20154:07 PM EDTUpdated Thu, Jun 4 20154:49 PM EDT

The soccer world is in disarray amid a bribery scandal allegedly involving several officials of FIFA, the sport's governing body. But that shouldn't stop investors from scooping up shares of this football club, according to one Wall Street firm. And yes, retail investors can buy shares of this team because they trade in the U.S. on the New York Stock Exchange, making it one of the rare pure plays on a sports franchise in the world. Credit Suisse initiated coverage on shares of Manchester United , the U.K. version of the Yankees, with an "outperform" rating and $23 price target, which represents a more than 30 percent gain from here. From the note: "We are bullish on MANU for the following reasons: 1) The club controls live soccer content from one of the most successful teams in the world—we see long-term structural growth opportunities for sports.... 2) The club is well-placed to benefit from the growing popularity of soccer globally.... 3) We are particularly bullish on the growth potential of commercial income, driven by the exploitation of the club's brand in retail and e-commerce.... 4) We believe the valuation looks compelling, with the shares trading at 18.6x 2016 EV/EBITDA." The analyst, Omar Sheikh, presents some interesting theories in the report as he looks to find a way to value a sports club that doesn't have any publicly traded peers. "There is a positive correlation between the number of social media followers on the one hand and annual revenue on the other for a broad range of consumer brands. This is logical—by following, for example, Zara, on Facebook, Twitter or Instagram, an individual is registering an affinity with the brand which probably makes that individual more likely to purchase a product. In the case of Manchester United, we highlight that the Club's large number of social media followers looks significantly underexploited." Among global soccer clubs, Manchester is third behind FC Barcelona and Real Madrid in terms of Facebook and Twitter followers. Read More Trading the global bond market panic Sheikh also makes the point that his price target may depend on the team's performance on the pitch in the English Premier League, which just crowned Chelsea as the champion of the 2014-15 season. "The stock is likely to be sensitive to the team's performance in the Premier League and UEFA Champions League tournaments. These run from August-May and September-May, respectively." To be sure, Manchester's stock is not as liquid as the typical security. The analyst points out this could be a risky holding if the stock drops and the retail trader wants to sell it. That order may not get filled until the shares have dropped much lower. It's a risk, but a known one so if one has the risk tolerance, this could be an unique opportunity to bet on a sports team.

Wayne Rooney of Manchester United celebrates a goal during a Barclays Premier League match between Manchester United and Manchester City at Old Trafford on April 12, 2015.

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The soccer world is in disarray amid a bribery scandal allegedly involving several officials of FIFA, the sport's governing body.

But that shouldn't stop investors from scooping up shares of this football club, according to one Wall Street firm.

And yes, retail investors can buy shares of this team because they trade in the U.S. on the New York Stock Exchange, making it one of the rare pure plays on a sports franchise in the world.