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The Expert View: JD Sports, Go-Ahead and Dairy Crest
by Chris Marshall on Sep 20, 2013 at 05:01
JD Sports shares to sprint ahead
JD Sports Fashion (JD.L), the acquisitive group that includes brands like Millets and Blacks as well as the core sneaker selling JD chain, is still being underappreciated by investors, say analysts at Cantor Fitzgerald.
It’s a tale of two companies according to Freddie George and Kate Calvert.
‘The core business is ‘firing on all cylinders’, has a clearly defined proposition and significant potential for development overseas with the support of the international sports brands, in our view,’ they noted.
But the other divisions are a long way from being profitable, they add. ‘We are confident that the Outdoor and Fashion losses will either be markedly reduced over the next two years or management will be under pressure to dispose of these activities.’
The pair reiterated their ‘buy’ stance on the stock and upped their target price by £2.50 to £12.50. The shares hit £10.20 on Thursday, having gained 0.6%.
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- JD Sports Fashion PLC (JD.L)