Barclays has maintained its “overweight” rating on JD Sports Fashion PLC (LSE:JD.) as the bank believes the unchanged guidance was “reassuring” for investors, although it lowered its price target from 195 pence to 185 pence. due to the results.
Earlier this week, JD released its delayed figures for the full year, with earnings more than doubling.
The bank’s analysts added that investors were understandably “concerned about the delay in JD’s results.”
However, they were reassured that the results were in line with expectations, with guidance for fiscal year 2023 unchanged.
There were some exceptional new items, though mainly related to the increased value of put options with respect to Genesis, the US division of JD, and Iberian Sports Retail Group, both of which performed strongly financially.
Barclays said that while the FTSE 100 company’s liability increases if put options are exercised, JD’s nearly £1bn cash balance comfortably exceeds accounts payable in non-current liabilities, of which it believes roughly £775.4m are put options.
Source: www.proactiveinvestors.co.uk