JD Sports Fashion PLC (LSE:JD.)’s new chief executive is already making his mark, said Credit Suisse, which remains bullish on the stock.
Analysts at the bank kept an ‘outperform’ rating and target price of 190p unchanged.
Specifically, analysts at the bank believe Regis Schultz is focusing on “greater apparel penetration and market share gains in the US with potential to better integrate digital and retail channels.”
Credit Suisse raised its earnings per share forecast following the group’s first half results, saying full-year guidance looks “conservative” given the strength of the US dollar.
Additionally, it does not “believe the current share price reflects the resilience of the category and JD’s core consumer, growth potential via store openings.”
Resilient sales in the first three quarters of the year are down to higher penetration in apparel, improving its availability, price increases, resilient core customers and improvements in Europe, Credit Suisse said.
Looking forward, the broker believes these factors will continue to drive performance over the next year and beyond.
However, there are some risks before full-year results are posted in January, such as bigger brands, like Nike, going direct-to-consumer, high channel inventory and sporting goods demand weakening, Credit Suisse said.