NIQ Global Intelligence (NIQ) is poised to benefit from revenue growth and margin improvement, UBS Securities said in a Sunday note initiating coverage of the company's stock.

The company is "well positioned" for revenue growth of mid-single digits, UBS analysts said. NIQ's Intelligence offering is "crucial" to clients' understanding what, when, and how much consumers are buying, while its Activation offering gives insights on why consumers are buying a product, they said.

The analysts said they believe NIQ enjoys high barriers to entry, given the scale of its mission-critical data collection as it provides proprietary data, software applications, and analytics to around 23,000 clients across over 90 countries. The analysts also see a low risk of disintermediation given integration of NIQ's data and insights in client workflows.

UBS initiated coverage of the company's stock with a buy rating and a price target of $24.

Price: 18.02, Change: +0.08, Percent Change: +0.45