LONDON (ShareCast) - (Sharecast News) - JD Sports surged on Tuesday after Deutsche Bank upped its price target on the stock to 100p from 85p.
"We have thought long and hard about the risk/reward on JD Sports and what would move us from our long held bearish view," the bank said.

"Atop the earnings decline, negative sentiment has driven a material de-rating in the shares, and kept them there. An end to downgrade cycle, line of sight to a Nike comeback and rebuild of confidence in management are all prerequisites, in our view, to supporting an ability to re-rate."

DB said that while progress is beginning to be made, this doesn't necessarily translate into earnings upside.

The bank said it sees two elements warranting more in-depth consideration.

"Firstly, what a Nike comeback looks like in reality for JD Sports as Nike moves to increasingly segment and differentiate wholesale channels whilst bringing new partners on board.

"Secondly, where the balance of risks sits on exposure to US consumer price elasticity; our concern is that it is weighted towards the retailer."

Deutsche kept its 'hold' rating on the shares, which were up 5.7% at 92.82p at 1010 BST.

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