Broker puts JD Sports shares back in fashion

SHARES in JD Sports sprinted ahead yesterday after analysts at Barclays reiterated their support for the stock.

The sportswear retailer is due to report its first-half results in less than two weeks.

Barclays said the stock had been ‘a rollercoaster ride’ so far this year, climbing 19pc between the end of March and May only to fall more than 30pc since then.

Investors are concerned about the effects of a weaker pound on the firm’s margins and competition from Amazon’s partnership with Nike.

But Barclays said the risks were ‘exaggerated’ and that the company looked well positioned to grow, with an international store roll-out, the continuing trend of so-called athleisure, and good brand relationships.

Supporters also say it is set to benefit as shoppers move away from rival Sports Direct for a better shopping experience rather than cheaper prices.

Analysts said ‘the recent sell-off provides a favourable entry point for a strong and consistent growth rating’. Shares jumped 4.3pc, or 13.1p, to 316.4p.

The FTSE 100 recovered from the previous day’s dip, finishing the day 0.4pc higher, or 27.83 points, at 7365.26.

Top of the pile was equipment rental firm Ashtead, which was up 4.8pc, or 77p, to 1672p.

Analysts at BNP Paribas last week upped their target price for Ashtead by 2pc to 1575p; the firm is due to publish first-quarter earnings on September 12.

The highest riser on the FTSE 250 was Diploma after a trading update revealed the firm expects revenues to be up 17pc for the year when it reports next month.

Acquisitions and a weaker pound have helped the group, which supplies specialised technical products and services in the life sciences and healthcare sectors.

Diploma said that it was on track to report in line with expectations, and shares surged 5.9pc, or 61p, to 1089p.

Royal Mail, up 0.8pc, or 3p, to 390.5p, was relegated from the FTSE 100 into the FTSE 250 alongside Provident Financial, down 1.6pc, or 14.5p, to 892p.

NMC Health, up 1.7pc, or 47p, to 2712p and housebuilder Berkeley

Group, down 0.6pc, or 22p, to 3700p, passed the other way.

Carillion, which fell 3.7pc, or 1.75p, to 45.46p, was dumped out of the FTSE 250. Aim-listed oil and gas company

Pantheon Resources was keen to update the market as Hurricane Harvey continued to batter Texas, where it has interests in several projects. Some 40 inches of rain has fallen in parts of the US state and Pantheon said it had suspended all of its operations in the region. The company said it was unlikely to be able to assess the damage for several days. Shares were off 2.2pc, or 1p, to 44.25p.

Elsewhere on the alternative market, Paragon Entertainment plunged despite reporting a 45pc increase in revenue in the first six months of the year to £8m.

Paragon is involved in the design and installation of themed attractions with recent projects including the Rolling Stones exhibition at London’s Saatchi Gallery.

Paragon recorded profit of £331,000 in the six months to June 30, up from £106,000 a year ago, but debt of £877,000 seemed to put investors off despite the upbeat update. Shares slipped 13.5pc, or 0.55p, to 3.52p.

Workspace Group edged up after the sale of an industrial estate in London for £30m. Shares gained 0.6pc, or 5p, to 876p.