Citigroup and Altium cut targets on JJB Sports

Citigroup and Altium Securities cut their price targets on sportswear retailer JJB Sports and recommended that investors sell the shares.

Citigroup cut its price target on JJB Sports to one pence from 20 pence, saying current trade was deteriorating and the lifestyle division was losing money.

"JJB's fate seems to be in the hands of their lending banks, a predicament that could leave the shareholders with little equity value," Citigroup analyst Ben Spruntulis said in a research note.

"A lot now hinges on the value that can be achieved from the disposal of the leisure division," the brokerage said.

Altium cut its price target on the stock to eight pence from 10 pence.

"Given the lack of clarity on the profit outlook and the negotiations with the banks, we cannot justify holding the shares," Altium analyst David Stoddart said in a note.

The reshuffle, based on tomorrow's closing share prices, is to take effect after the market close on Friday.