Juventus shares are rallying, but is this a false dawn for troubled club?

Many football fans like to take a punt by purchasing shares in a club, but while Manchester United seems to enjoy a higher profile with investors, it is Juventus [MIL:JUVE] which looks like a better bet financially. Shares in Juventus are on a bull run at the moment, having bounced off a low of around EUR 1.7 in May, they currently trade at EUR 2.55.

Going into the year Juventus stock looked like it was in decline, but the shares have since rallied. They are currently up 15.9% on a YTD basis. It looks like there could be significant potential upside in the stock, as much as 80% plus based on current metrics and peer performance.

I always proceed with a little caution with football clubs, it's a sector I understand less, and football club shares can be mercurial at the best of times; performance can mask many murky dealings.

Juventus, for those who are not familiar with the sport, is based in Turin and competes in Italy's Serie A, which is the Italian equivalent of the UK Premiership. It was founded in 1897 and has won 36 official league titles. It is one of the most famous football clubs in Europe.

Running the shares through the AI analysis engine at Bridgewise bears out a positive forecast, with a price target of EUR 4.4. Juventus is starting to look like it could be on a sustained bull run. But on the other hand management has had something of a chequered track record with the Italian authorities, including the financial regulator, and a stormy relationship with its shareholders. Could another scandal or the ongoing news flow from existing problems hit the share price?

Risks and rewards of betting on Juventus to win