The bank also said while they were mindful of near-term uncertainty, they were “even more optimistic on the recovery of sportswear demand and the resilience of JD’s core consumer”
() has had its target price hiked to 750p from 620p by analysts at Berenberg, who said the retailer is “well positioned to benefit from market consolidation” and its flexible store estate will allow it adapt to evolving consumer shopping patterns.
In a note on Friday, the bank also reiterated its ‘buy’ rating on the stock, saying consolidation in the market was “inevitable” as smaller players were squeezed by the coronavirus disruption, which in turn presented an opportunity for JD.
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The broker added that the FTSE 100 firm benefitted from “very short leases” on its stores, allowing it to “negotiate leases where footfall is lower while also moving towards turnover-linked rents to protect store profitability”.
“JD appears confident in its negotiating power, as its stores are well invested, engaging environments that drive significant footfall: they are highly attractive to consumers, brands and landlords”, Berenberg said.
The bank also said while they were mindful of near-term uncertainty, they were “even more optimistic on the recovery of sportswear demand and the resilience of JD’s core consumer”.
Overall, Berenberg said the company remained one of its top picks in the sector.
JD Sports shares jumped 6.7% to 709.8p in mid-morning trading.
Read More: JD Sports Fashion PLC target price hiked as Berenberg says group poised to
