Seymour Pierce upgraded its rating for the sports retailer from “hold” to “buy,” a and rose its target price from 800p to 1000p. The broker made the change in light of its acquisition of Blacks and JJB’s passing into administration, as well as Sports Direct’s plans to develop in e-commerce. The progress is expected to bring increased overseas development, “which should help earnings to revert back to the impressive 2008-2011 trend”, the broker said.
N+1 Singer maintains its “hold” rating for the athletics supplier, keeping its target price at 385p. “Sports Direct’s strategy in relation to JJB Sports has played out far better than we initially expected…it is the sales transfer from JJB’s demise that will be the biggest benefit,” the broker said. The transfer should see about £19m of incremental profit in 2014. N+1 Singer expects a six per cent Olympics boost, and a move to £90m net cash next year.
UBS downgraded the Dutch property investors from “buy” to “neutral,” saying that shares have appreciated to reflect the upcoming November dividend. UBS maintained its €31 target price, calling Eurocommercial a “well run company,” but highlighted its Italian portfolio risks. The broker said the disposal of the Burlov Centre was practical in light of increasing competition from Malmo and little room for added value to the centre.