City firm Investec describes JD Sports' (LON:JD.) first half numbers as "very strong" as it kicked its price target on the stock up 140p to 1,040p.
Shares in the popular tracksuit and trainer retailer rose 1.29% to 905p after it posted a more than 80% rise in profits for the six months in to a record ££46.6mln.
Kate Calvert, analyst at Investec, said the figure had grown by more than the broker had forecast," showing the benefits of several years of store and infrastructure investment, strong product ranges, a growing online business & good supplier relationships, helped by European expansion".
She believes the firm's valuation does not reflect the material UK and European growth potential and repeated a 'buy' recommendation to investors.
For the 26 weeks to August 1, revenues at the group rose 21% to £809.9mln (2014: £670.2mln), while pre-tax profit rose 88% to £44.7mln compared to £23.7mln last year.
Sales at stores open a year or more increased by more than 10%, while trading in August and September had been encouraging, the group said.
But Peter Cowgill, executive chairman, though delighted with the performance, said the honeymoon could not last forever.
"In an extremely competitive market for Sports Fashion footwear across Europe, we must acknowledge that the levels of organic growth that we have seen over the last two years are unlikely to continue indefinitely, albeit the JD brand continues to strengthen and further opportunities prevail.
"Our current successful exploitation of these favourable market conditions reflects investments that we have made over a number of years in developing our multi-channel retail proposition and driving improved buying, merchandising and retailing disciplines.
"We continue to invest heavily in these areas."
Investec forecasts pre-tax profit to reach £128mln for full year 2016, rising to £138.3mln in 2017.
Broker Peel Hunt also upgarded the stock today, pushing the price target to 1,100p from 1,000p previously. The rating is 'buy'.
Shares in the group have soared in recent months and added almost 80% since the turn of the year.