We place our forecasts and our price target under review, but continue to view a valuation which is more expensive than both Next [hold] and Debenhams [buy] on a lease adjusted basis as unjustified given the continuing concerns over corporate governance and the unresolved future financing arrangements.
JONATHAN PRITCHARD| ORIEL SECURITIES
The underlying business here is in very good shape. The advertising campaign is clearly resonating with its core demographic. And its chief competitor JJB is struggling. This couldn't be better timed as we now approach the London Olympics. The World Cup effect is quantified at £15m to £20m of earnings.
FREDDIE GEORGE| SEYMOUR PIERCE
The company will continue to benefit from the demise of JJB Sports, which recently issued a profit warning. The company should be a beneficiary of the keep fit trends and forthcoming sporting events – for example the Olympics. We maintain our ‘buy’ recommendation and raise our price target to 165p from 150p.