STOCKS NEWS EUROPE-Sports Direct drops, less upbeat on outlook

Shares in Sports Direct (Dusseldorf: ZVX.DU - news) top Britain's FTSE 100 fallers' list, off 8 percent in robust trade, with some analysts blaming the sporting goods retailer's comments on its near-term outlook which accompanied a rise in first-half profit.

"Solid (KOSDAQ: 050890.KQ - news) delivery from Sports Direct, but the rhetoric on current trading is not as bullish as usual and we are shaving forecasts (admittedly from the top of the range)," Oriel Securities says.

"The shares' momentum is unlikely to persist given the in-line nature of the results," says the broker, which has a "hold" rating on the stock.

Sports Direct, up around 90 percent in 2013, hit a record high on Wednesday, pushing it into further into 'overbought' territory on the 14-day relative strength index, a technical momentum indicator.

Analysts at Espirito Santo also have a downbeat take on the results. They keep their "buy" rating on the stock, but place their fair value under review.

"While we do not believe that the market had a strong consensus view coming into these results we believe that a literal take on them is likely to be of slight disappointment," they say.

"The closely watched Underlying EBITDA increase of 12.3 percent and not overly upbeat comments on the immediate H2 outlook suggest a pause in estimate increases and maybe some revision down at the top end."

Trading volume in Sports Direct stands at 4-1/2 times its 90-day daily average, against the FTSE 100 on a quarter.

Reuters messaging rm://tricia.wright1.thomsonreuters.com@reuters.net