6th Aug 2015 11:02
LONDON (Alliance News) - N+1 Singer upgrades its profit forecast for JD Sports after the sports retailer said it anticipates beating market expectations for its full financial year following a strong performance in the first half.
Last Friday, JD said like-for-like sales in the half year to August 1 were ahead of its expectations and that it expects its headline pretax profit for the full year to be around 10% ahead of the current market consensus of GBP110 million.
N+1 Singer says that the like-for-like performance is an "important achievement signifying strong growth on growth", confirming that a favourable trend in athletic footwear and apparel is continuing.
The broker upgrades its pretax profit forecast for the full year by 13.6% to GBP125 million and increases its price target by 16% to 835 pence.
"It is hard to know if this two-year run rate can be sustained over the seasonal peak, when densities are higher, but if it can then further upgrades appear possible," N+1 Singer analyst Matthew McEachran says.
N+1 Singer maintains its Hold recommendation on the stock. Shares in JD are trading up 1.4% at 845.75p midday Thursday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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