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Analysts cut price targets for JJB Sports

Analysts have cut price targets for JJB Sports and recommended that investors sell shares, in the wake of deteriorating trade.

Citigroup cut its price target to 1p from 20p saying that the group's lifestyle division, which includes Original Shoe Co and Qube, was losing money, and that current trade was deteriorating.

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

Altium Securities cut its price target from 10p to 8p. Analyst David Stoddart's note said: "Given the lack of clarity on the profit outlook and the negotiations with the banks, we cannot justify holding the shares."

On Wednesday JJB Sports announced that it had postponed full payment of its £20 million bridging loan to Icelandic bank Kaupthing on the due date of December 14. Instead it struck a deal with all of its lenders Barclays, HBOS and Kaupthing to repay its loans on a pro-rata basis.

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