Barclays has maintained its 'overweight' rating on JD Sports Fashion PLC (LSE:JD.), as the bank believes unchanged guidance was "reassuring" for investors, although it cut its target price from 195p to 185p on the back of the results.
Earlier this week, JD released its delayed full-year numbers, with profit more than doubling.
Analysts at the bank added that investors, understandably, had been “concerned about why JD’s results were being delayed”.
However, they were comforted by the results being in line with expectations, with 2023 financial year guidance unchanged.
There were some new exceptional items, although these mainly related to the increased value of put options regarding Genesis, JD’s US division, and Iberian Sports Retail Group, both of which had strong financial performances.
Barclays said that while the liability to the FTSE 100 company increases if the put options are exercised, JD’s near £1bn cash balance comfortably exceeds payables in non-current liabilities, of which it believes roughly £775.4mln to be put options.