JD Sports Fashion Plc (LON:JD) has received a consensus recommendation of “Moderate Buy” from eight analysts currently covering the company, according to MarketBeat.com. The average price target for the stock over the next twelve months is set at GBX 118.29, reflecting a positive outlook from the investment community.
Of the analysts, four have issued a hold recommendation while the remaining four have rated the stock as a buy. This mixed sentiment highlights both cautious optimism and strong confidence in JD Sports Fashion’s performance.
Recent Analyst Ratings and Price Targets
Several equity analysts have provided updates on JD Sports Fashion’s stock. On September 3, 2023, JPMorgan Chase & Co. lowered its target price from GBX 92 to GBX 90 and assigned a “neutral” rating. Conversely, Berenberg Bank maintained a “buy” rating with a target price of GBX 155, reflecting its bullish stance on the stock as of September 24, 2023.
On the same day, Peel Hunt reiterated a “buy” rating and set a price target of GBX 200. This suggests a strong belief in the company’s growth potential. Shore Capital also restated its “buy” rating in a report dated November 5, 2023. In contrast, UBS Group reaffirmed a “neutral” rating with a lower price objective of GBX 84 on August 15, 2023.
Financial Performance and Share Buyback Program
JD Sports Fashion reported its quarterly earnings on September 24, 2023, with an earnings per share (EPS) of GBX 4.60. The company recorded a net margin of 3.17% and a return on equity of 14.97%. Analysts project that JD Sports Fashion will achieve an EPS of approximately 15.04 for the current financial year.
In addition to its earnings report, JD Sports Fashion announced a share buyback program on September 25, 2023. This initiative allows the company to repurchase outstanding shares, which is often interpreted as a sign that the board believes the stock is undervalued. Such programs can enhance shareholder value by reducing the total number of shares available in the market.
JD Sports Fashion operates in the retail sector, specializing in branded sports fashion and outdoor clothing, footwear, and accessories for men, women, and children. The company also offers leisure goods, sports equipment, and distributes various sports apparel.
Investors and analysts alike will be closely monitoring the company’s performance in the coming months, particularly in light of the recent recommendations and financial strategies.
