BofA Tweaks Frasers Group Price Target, Forecasts Amid Cash Flow, Capital Allocation Changes

09:38 AM EST, 12/15/2025 (MT Newswires) -- BofA Global Research on Monday updated its price target and financial forecasts for Frasers Group (FRAS.L), following the British sports and luxury retailer's fiscal first-half results and two large real estate acquisitions. With the group's recent purchase of the Braehead Shopping Centre in Scotland and the Swindon Designer Outlet, analysts are expecting 500 million pounds sterling of cash outflows linked to both retail assets. "Factoring these activities into our estimates lifts both sides of the balance sheet with Apr-26E net debt rising to GBP1.6bn. In total across 2025 and 2026E we model GBP2.4bn of capital deployment. With further Hugo Boss put options likely to be called in the coming months in included in these estimates," analysts wrote. "Apr-26E gross debt is GBP1.9bn versus a current term loan and revolving credit facility of GBP3.1bn. The flow through of these cash flow items leads to a 2026E EPS cut of 4% but a 2027-28E EPS uplift of 2-3%." For fiscal 2026 through 2028, the revenue forecasts increased 2%. Meanwhile, the buy rating on the stock was reiterated, while the price target was trimmed to 10.55 pounds from 11.07 pounds.