No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Citi downgraded its stance on JD Sports on Thursday to 'neutral' from 'buy' and cut its price target to 95p from 150p as it pointed to a weaker growth outlook.
The bank said it was updating estimates following soft peak trading and the company's full-year guidance downgrade.
Citi cut its forecast for FY25 like-for-like and organic growth to 0.0% and 5%, respectively, from 1.1% and 6.4% growth, previously.
The forecasts for FY26 were cut to -2.7% and +1.3%, from +1.6% and +6.9%, respectively. Citi said this reflects weak consumer sentiment and a promotional environment that JD has chosen to limit participation in, particularly in North America and the UK.
The bank's estimate for FY25 gross margin therefore increased 10 basis points to 47.8%.
"Our reduced sales forecasts lead to FY25e EBIT margin -30 basis points versus previous estimates," it said.
"We reflect the Courir acquisition, and JD's new guidance of an additional acquisition accounting-related cost for Hibbett of 6m in FY25e."
Citi cut its FY25 pre-tax profit estimate by 5% to 920m, versus consensus of 955m and guidance of 915m to 935m, while the FY26 estimate for pre-tax profit was cut 18% to 930m.
At 1510 GMT, the shares were down 2.4% at 81p.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.
