Frasers Group PLC (LSE:FRAS) has found a fan in Barclays, which sees worries about the trend for manufacturers to go “direct to consumer” as overplayed.
In an initiation note, analysts at the bank said it expects the Sports Direct owner to emerge as one of a small circle of retailers that brands are prepared to back with high-quality products.
Nike’s CFO recently mentioned Sports Direct alongside JD Sports Fashion PLC (LSE:JD.) and Dick’s Sporting Goods as key partners, Barclays notes, while Adidas’ chief executive Bjørn Gulden welcomed Frasers' acquisition of SportScheck.
“We are committed and excited to support Sports Direct on their journey,” he said.
“Both of these comments reflect well on the elevation strategy under the leadership of [Frasers] chief executive Michael Murray,” said the bank, which sees Frasers emulating JD Sports' athleisure/sports fashion success in European sporting goods.
'Overweight' with a 1,060p target is Barclays' investment view.
Frasers shares were down 0.17% at 879.00p in afternoon deals.