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(Sharecast News) - Deutsche Bank cut its price target on JD Sports to 85p from 95p on Tuesday and kept its 'hold' rating on the stock as it said the retailer was "running against the trend".
The German bank pointed out that JD Sports had downgraded expectations for the year ahead again with peak trading, pointing to a subdued 2026 market outlook, now resulting in another year of earnings declines.
Deutshe Bank said that beyond the Nike comeback, there were three fashion trends it was watching that suggest potential for ongoing downside risk to JD's demand outlook.
"Female fashion demand is rotating out of the category, we watch for a core male consumer doing something similar noting the recent momentum at Timberland, and we see a risk that popularity of running styles leaves JD with a less differentiated product offer than it once had," the bank said.
"How much subdued demand could correct with a Nike lifestyle comeback remains to be seen, there is also potential for Adidas' push on the 'Superstar' to capture some of the demand that has come out of Nike classics."
DB added: "As of today though, our view is that overall levels of consumer volume demand within the category are challenged."
Morgan Stanley downgraded Chilean copper miner Antofagasta on Tuesday as it turned "more cautious on the pure plays" against a backdrop of record valuations and softening copper micro drivers.
In a broader note on metals and mining, the bank cut Antofagasta to 'underweight' from 'equalweight' and reduced its price target on the stock to 3,050p from 3,070p.
Morgan Stanley said it was downgrading Antofagasta as it believes the valuation premium has reached historical highs, skewing its risk/reward unfavourably.
It said that while a rising tide lifts all boats, the "buy-over-build narrative" was more supportive for copper plays with superior growth optionality vis-à-vis those with fuller valuations and thinner project pipelines, such as Antofagasta.
"In addition, the Chilean miner has been a key beneficiary of investor inflows following major industry-wide operational setbacks," it said. "Over the next 12-18 months, we see scope for rotation away from ANTO as peers derisk and copper-focused supermajors emerge."
Analysts at RBC Capital Markets updated its Centrica estimates ahead of the firm's 2025 year-end results, lowering its numbers but raising its target price.
RBC Capital said it thinks some of the headwinds facing Centrica were "well acknowledged in the market" and said it would look for further details on medium-term guidance and a decision on Rough as potential positive catalysts in the coming months.
The Canadian bank also incorporated the remaining growth from Centrica's £4bn capex plan in its estimates for the first time, leading it to hike its target price on the stock from 200p to 215p.
"Our updated estimates reflect expected headwinds for 2025, lowering our estimates in retail and Centrica Energy. Going forward, we now incorporate an additional £0.9bn of growth capex for CNA into our assumptions and roll forward to 2026. We forecast an EPS CAGR to 2030 of ~10% and believe higher medium-target guidance and a resolution at Rough could present near-term positives," said RBC, which reiterated its 'outperform' rating on the stock.