October 16, 2018 / 7:28 AM / a month ago

BUZZ-JD Sports: Finish Line acquisition "a step too far" - MS

** Shares in leisure-wear retailer JD Sports Fashion -5.6 pct, 2nd biggest faller on the FTSE Mid cap index, after Morgan Stanley starts with “underweight”

** MS raises concerns with recent acquisition of Finish Line and says “...Finish Line (acquisition) – may be a step too far”

** “We are unconvinced by its strategy to inject apparel into these footwear stores” - MS

** Adds it is also concerned about co’s reliance on two brands (Nike and Adidas) that are growing ‘direct-to-consumer”

** Currently 7 brokers cover the stock, 6 of which has rating of “buy” or equivalent, and one has “hold”, according to Refinitiv estimates

Reporting By Justin George Varghese in Bengaluru; RM: justin.varghese.thomsonreuters.com@reuters.net

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below