October 16, 2018 / 7:31 AM / a year ago

BUZZ-JD Sports: Finish Line acquisition "a step too far" - MS

** Shares in leisure-wear retailer JD Sports Fashion -5.6 pct, 2nd biggest faller on the FTSE Mid cap index, after Morgan Stanley starts with “underweight”

** MS raises concerns with recent acquisition of Finish Line and says “...Finish Line (acquisition) – may be a step too far”

** “We are unconvinced by its strategy to inject apparel into these footwear stores” - MS

** Adds it is also concerned about co’s reliance on two brands (Nike and Adidas) that are growing ‘direct-to-consumer”

** Currently 7 brokers cover the stock, 6 of which has rating of “buy” or equivalent, and one has “hold”, according to Refinitiv estimates

Reporting By Justin George Varghese in Bengaluru; RM: justin.varghese.thomsonreuters.com@reuters.net

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