JD Sports Fashion (LON:JD) has been reaffirmed with a “buy” rating by analysts at Shore Capital, as noted in a recent research report released on September 24, 2023. This positive assessment comes amid a mix of reviews from various financial institutions, which have issued differing target prices for the company’s shares.
On September 3, 2023, JPMorgan Chase & Co. lowered its target price for JD Sports Fashion from GBX 92 to GBX 90, while maintaining a “neutral” rating on the stock. In contrast, Berenberg Bank emphasized its confidence in the company by reaffirming a “buy” rating and setting a target price of GBX 155. This divergence in analyst outlook illustrates the varying perspectives on the company’s performance and market potential.
Deutsche Bank Aktiengesellschaft also adjusted its target price for JD Sports Fashion, increasing it from GBX 85 to GBX 100, while assigning a “hold” rating. Similarly, the Royal Bank of Canada raised its target price from GBX 90 to GBX 95, reflecting an “outperform” rating for the stock. UBS Group, on the other hand, maintained a “neutral” rating and set a target price at GBX 84.
Overall, the consensus among analysts indicates three recommendations to buy and five to hold the stock, resulting in an average consensus rating of “hold” with a price target of GBX 104.67, according to MarketBeat data.
Current Stock Performance and Financial Metrics
JD Sports Fashion’s shares opened at GBX 84.60 on September 24, 2023, reflecting a decline of 1.4%. The company currently boasts a market capitalization of approximately £4.38 billion. Key financial ratios indicate a quick ratio of 0.71, a current ratio of 1.42, and a notably high debt-to-equity ratio of 133.23. The stock has a price-to-earnings (PE) ratio of 846.00, alongside a price-to-earnings-growth (PEG) ratio of 1.05, and a beta of 1.65, suggesting higher volatility compared to the market.
The fifty-day simple moving average stands at GBX 94.98, while the two-hundred-day simple moving average is GBX 88.26. In its latest quarterly earnings report, released on September 24, JD Sports Fashion reported earnings per share of GBX 4.60. The company also posted a net margin of 3.17% and a return on equity of 14.97%. Analysts project that JD Sports Fashion will achieve earnings per share of approximately 15.04 for the current fiscal year.
Share Buyback Program Announcement
In a significant move, JD Sports Fashion’s board announced a share buyback program on September 25, 2023, authorizing the company to repurchase shares through open market purchases. Such programs are often viewed as a signal that the board believes the company’s shares are undervalued.
Founded in 1981, JD Sports Fashion plc specializes in the retail of branded sports fashion and outdoor clothing, footwear, and accessories for children, women, and men. The company operates through its Sports Fashion and Outdoor segments and also distributes a variety of leisure goods, including sports apparel, fishing gear, camping equipment, boats, and bicycles.
This strategic mix of retail offerings positions JD Sports Fashion as a significant player in the sports fashion sector, and the company’s financial maneuvers and market assessments will be closely monitored by investors and analysts alike.
