Analysts at Shore Capital Group (LSE:SGR) believe JD Sports Fashion PLC (LSE:JD.) is demonstrating “significant progress” toward targets outlined in February.
These targets related to building up its influence in Europe and “reinforcing its corporate governance”.
The UK broker also believes the shares are undervalued, rating the leisurewear giant as a ‘buy’.
“Shares continue to trade at a significant discount to UK and international peers…despite offering a double-digit free-cash-flow yield,” said ShoreCap.
The fashion retailer began the second half of 2023 by first announcing it was entering the Middle East through a deal with a Dubai-based well-being company.
A few days later, the group confirmed it had been involved in an anti-competition investigation over a deal with Leicester City Football Club.
Since JD fully co-operated with the competition and markets authority it was able to enter a leniency agreement which gave it full immunity from fines.
On Friday, the company rounded off the busy week by confirming it would be taking full control of European-based Iberian Sports Retail Group after planning to buy outstanding shares for €500mln.
JD Sports is currently trading at around 140p, having risen by 8% in the last six months.