JJB Sports’ house broker, Panmure Gordon, has set a new price target of 40p on turnaround hopes.

JJB, which undertook a second CVA earlier this year, conducted a fundraising and moved to AIM,  “now has the finances and strategy to restore the brand”, maintained Panmure analyst Philip Dorgan.

The Olympics and the England football team’s likely qualification this autumn for Euro 2012 could be sales catalysts for JJB, which Dorgan said could generate sales per sq ft of more than £200 and margins of more than 7% within four years.

He argued: “JJB’s target customers account for about £2bn of sales, which we believe is enough to sustain a strong turnaround.

“We see parallels with the recoveries of Morrisons and Sainsbury’s who, over time, recovered their natural customer bases.”

JJB is expected to publish prelims at the end of this month.