JD Sports gets target hike from Deutsche Bank as focus shifts to cash generation
Published: 10:13 14 Jul 2026 EDT
JD Sports Fashion PLC (LSE:JD., OTC:JDSPY) is dealing with the "new reality" by focusing on rebuilding margins and cash generation after years of rapid expansion, according to Deutsche Bank.
Analyst Adam Cochrane increased his target price on the retailer to 95p from 85p despite maintaining a 'hold' rating.
"JD Sports has seen a significant pivot in strategic direction which alters the investment case in our view," he said.
The broker said the retailer was now concentrating on execution and free cash flow after several years of acquisition-led growth in what has become a more difficult retail environment.
However, Cochrane remains cautious on trading conditions, pointing to continued weakness in the global athleisure market, particularly in the lifestyle category where JD Sports has greater exposure.
He forecasts like-for-like sales will fall 1% in the 2027 financial year before returning to modest growth of 1% in the 2028 financial year.
While the stronger focus on cash generation and operational discipline marks an important change for the business, the Deutsche Bank analyst believes the recovery in demand is likely to be gradual.
