Financial Trading Blog
Stock of the day 14/06/2016 – JD Sports Fashion PLC
Can that continue following the company’s AGM and trading update on Friday?
Bar one or two blips JD Sport just hasn’t stopped climbing since 2016 began. January’s initially choppy waters were overcome with a stellar post-Christmas update, the company revealing a 10.6% surge in like-for-like UK and European sales (compared to the profit warning from Sports Direct). This sent the stock to an all-time high of £11.65 by the start of February, though JD Sports admittedly couldn’t enjoy that peak for long as the miserable trading of that month caused the retailer to fall all the way back to £10.24.
(Source: IT-Finance.com 14/06/2016)
By the beginning of March JD Sport, like much of the wider market, had recovered from that February shock, spending the 6 weeks to the middle of April ping-ponging between £11 and £11.50. The company received its next major-boost in on April 13th with the release of its full year figures: revenue rose by a whopping 20% to £1.8 billion, with operating profit surging 50% to £158.9 million and pre-tax profit jumping a similarly strong 45% to £131.6 million.
That trifecta of headline figures spurred the stock on, sending it above the £12 mark for the first time in its history. Its rise didn’t end there, and by June 8th it had hit its latest all-time high, closing at £13.16. JD Sports Fashion PLC sits at a current trading price of £12.44 (IT-Finance.com, 14/06/2016).
In terms of its AGM/update on Friday investors will be looking for confirmation that the company’s robust trading pattern has continued into its new fiscal year. If anything investors will be looking for an accelerated performance, with Euro 2016 providing an opportunity for increased activity in the company.
JD Sports Fashion PLC has a consensus rating of ‘Buy’ with an average target price of £11.44.
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