Analyst Andrew Wade of Jefferies maintained a Buy rating on Frasers Group, with a price target of p1,200.00.
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Andrew Wade has given his Buy rating due to a combination of factors that highlight Frasers Group’s strong financial performance and strategic initiatives. The company reported a profit before tax for FY25 that aligns with its guidance, demonstrating resilience and effective cost management. Despite a slight dip in the FY26 profit forecast compared to estimates, there is optimism for future profit growth driven by strategic initiatives such as Frasers Plus.
Frasers Group’s robust performance in the second half of the fiscal year, with improved trading trends and significant gross margin gains, further supports the positive outlook. The UK Sports segment showed revenue growth and margin improvements, while Premium Lifestyle saw trading profit growth despite revenue declines, thanks to margin gains and operational efficiency. Although international trading profit faced challenges, it showed recovery in the latter half of the year, contributing to the overall solid performance of the core business areas.
In another report released yesterday, Deutsche Bank also maintained a Buy rating on the stock with a £8.50 price target.