JD Sports Fashion has potential for medium term recovery due to management actions to diversify the group's product range and invest in the online segment, Berenberg analysts write. "We think JD's recent issues have been to a large extent externally driven," they say. Berenberg cites a slowdown in the sportswear market, disposable income pressure on younger customers, and declining popularity for the Nike brand. The analysts add that issues were compounded by M&A distractions and slow investment in tech and online. Shares are down 1.4% at 83.04 pence. Berenberg has a buy rating on the stock and 155 pence target price. (ian.walker@wsj.com)
Corrections & Amplifications
This article was corrected at 05:56 a.m. ET to clarify Berenberg has a buy rating on the stock and 155 pence target price. An earlier article incorrectly said RBC had a buy rating on the stock.
(09:54 GMT) Correction to JD Sports Market Talk
Berenberg has a buy rating on the stock and 155 pence target price. "JD Sports' Recent Issues Mostly Externally Driven — Market Talk," at 0937 GMT, incorrectly said RBC had a buy rating on the stock.