Sports Direct shares dipped to less than a third of the price it floated at yesterday after Merrill Lynch issued a damning note on the company.
The shares ended the day down 5 per cent on 96.75p, after the investment bank said the stock market was “distrustful” of the company, slashed its earnings forecasts by 30 per cent and said the stock was worth just 80p. Analysts Mal Patel said there was “little merit” in holding the shares and estimated that like-for-like sales are down 15 per cent.
This morning’s Times said the property agent Malcolm Dalgleish, who sits on the board of Sports Direct, is likely to be named chairman of the company next week, although Dalgleish denied the claims.
The criticism from Merrill Lynch is particularly ironic given the bank’s role in floating the company in March, for which it has been heavily criticised.
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