RBC Capital Markets upgraded Frasers Group on Wednesday to ‘sector perform’ form ‘underperform’.
The bank said that Frasers, which owns Sports Direct and House of Fraser, should be relatively resilient in a consumer downturn given its exposure to low-priced sports retailing and due to the growth of its luxury format Flannels.
“Frasers has a mixed track record in Europe but longer term it has the opportunity to become one of a handful of strong omnichannel players, as the sector consolidates,” it said.
RBC cut the price target to 750p from 850p.
