The new chief executive of JD Sports Fashion PLC (LSE: JD.) is already making his mark, said Credit Suisse, which remains bullish on the stock.
The bank’s analysts left the ‘outperformer’ rating unchanged and the price target of 190 pence.
Specifically, the bank’s analysts believe that Regis Schultz is focusing on “increased apparel penetration and market share gains in the US with potential to better integrate digital and retail channels.”
Credit Suisse raised its earnings per share forecast following the group’s first-half results, saying full-year guidance appears “conservative” given the strength of the US dollar.
Furthermore, he does not “believe the current stock price reflects the strength of the category and the growth potential of JD’s core consumer through store openings.”
Resilient sales in the first three quarters of the year are due to higher apparel penetration, improving availability, price increases, resilient core customers and improvements in Europe, Credit Suisse said.
Looking ahead, the broker believes these factors will continue to drive performance over the next year and beyond.
However, there are some risks before full-year results are released in January, such as larger brands such as Nike going direct-to-consumer, high channel inventory and weakening demand for sporting goods, Credit said. Swiss.
Source: news.google.com