JD Sports Fashion (LON:JD) received a reaffirmed “buy” rating from Shore Capital, according to a recent research report released on September 27, 2023. This endorsement comes as part of a broader analysis where various financial institutions have adjusted their target prices and ratings for the company.
On September 3, JPMorgan Chase & Co. lowered its target price for JD Sports Fashion from GBX 92 to GBX 90, assigning a “neutral” rating. In contrast, Berenberg Bank reaffirmed a “buy” rating, setting a target price of GBX 155 on the same day. Deutsche Bank Aktiengesellschaft also made headlines by increasing its target price from GBX 85 to GBX 100, while maintaining a “hold” rating as of August 19. Furthermore, the Royal Bank of Canada raised its price target from GBX 90 to GBX 95, giving the company an “outperform” rating on August 8. UBS Group concluded this round of assessments by restating a “neutral” rating with a target price of GBX 84 on August 15.
The consensus among analysts reveals three “buy” ratings and five “hold” ratings, leading to an overall consensus rating of “hold” with a target price of GBX 104.67, according to data from MarketBeat.
Stock Performance and Financial Highlights
On the same day Shore Capital reiterated its rating, JD Sports Fashion’s shares opened at GBX 84.60, reflecting a slight decline of 1.4%. The company’s financial metrics include a quick ratio of 0.71, a current ratio of 1.42, and a debt-to-equity ratio of 133.23. With a market capitalization of £4.38 billion, JD Sports Fashion has a price-to-earnings (P/E) ratio of 846.00 and a price-to-earnings-growth (PEG) ratio of 1.05. The stock has a beta of 1.65, indicating higher volatility compared to the market.
The company recently reported its quarterly earnings on September 24, where it announced earnings per share of GBX 4.60. JD Sports Fashion’s net profit margin stood at 3.17%, while the return on equity reached 14.97%. Analysts predict that the company will achieve earnings per share of approximately 15.04 for the current fiscal year.
In a strategic move to enhance shareholder value, JD Sports Fashion’s board of directors approved a share buyback program on September 25. This decision enables the company to repurchase its own shares from the open market. Such buyback initiatives are often interpreted as a sign that the board views the company’s shares as undervalued.
About JD Sports Fashion
JD Sports Fashion plc specializes in the retail of branded sports fashion and outdoor apparel, catering to a diverse customer base that includes men, women, and children. The company operates through its Sports Fashion and Outdoor segments, providing a wide range of products including leisure goods, fishing and camping equipment, bicycles, and sports apparel.
As JD Sports Fashion navigates the complex landscape of the retail market, the recent analyst ratings and adjustments reflect a mix of optimism and caution, highlighting the company’s potential for growth amid fluctuating market conditions.
