JD Sports shifts focus to cash generation, prompting Deutsche Bank to raise target price despite cautious sales outlook.

JD Sports is adjusting its strategy to prioritize rebuilding margins and generating free cash flow after years of rapid expansion through acquisitions. Deutsche Bank raised its target price for JD Sports to 95p from 85p, reflecting this strategic pivot, though it maintained a 'hold' rating. The bank remains cautious about trading conditions due to ongoing weakness in the global athleisure market, especially in the lifestyle segment where JD Sports has significant exposure. Sales are expected to decline by 1% in the 2027 financial year before modestly growing by 1% in 2028, indicating a gradual recovery ahead.