Frasers Group PLC (LSE:FRAS) has been backed by Liberum, which read across from JD Sports Fashion PLC (LSE:JD.)’s positive full-year results.
The company is a 'Buy' with the broker with a target price set at 900p.
Liberum, the house broker, noted that its sports offer, luxury flannels products plus benefits from recent mergers and acquisitions “all position the group well.”
As well as that, analysts at the firm believe that Frasers’ model will prove to be “more resilient than JD’s given the latter’s greater exposure to athleisure fashionwear,” which may be more susceptible to times of economic downturn.
Frasers reiterated guidance in April, with profit before tax expected to fall between £300mln and £350mln.
Preliminary results are expected to be released on 21 July, although it will not include the recent £26.8mln acquisition of Studio Retail.
Liberum also adds that there is “much to like” about Frasers, which isn’t included in the valuation.
That includes a growing market, away from just Sports Direct, building on key third-party relationships as well as honing in on UK luxury through Flannels