LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg hiked their target price on retailer JD Sports from 240.0p to 285.0p on Monday ahead of the firm's Christmas trading update on 12 January.
Berenberg said it expects JD Sports to report another beat and a "typically" conservative start point for the coming year's guidance, given ongoing disruption due to Covid-19 pandemic-related restrictions and supply constraints.

However, the German bank noted that JD had "demonstrated time again" the "strength and resilience" of its brand and proposition, and best-in-class execution to navigate disruption well.

"JD remains in the sweet spot of strong consumer demand, and therefore we think there is scope for the company to positively surprise, even as comparatives toughen. We also expect disruption to accelerate the consolidation of sports retail, where JD will be the prime beneficiary," said the analysts, who also reiterated their 'buy' rating on the stock.

"In this context, JD continues to look relatively cheap, in our view, for its quality and momentum - offering a faster-growing and more diversified alternative to owning the sports brands, with further M&A optionality and insulation from China. We raise our price target to 285.0p and view the recent pullback as a buying opportunity into a long-term winner."

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