** Citi suggests increasing likelihood of retailer Accent AX1.AX running Sports Direct operations in Australia

** Brokerage points that rival Frasers' FRAS.L recent expansion of existing JV with MAP Active to take Sports Direct to five new markets in Asia as an indication of potential for AX1's role in AU

** "Accent stated during its 1H25 earnings call that it remains in active discussions with Frasers for long-term strategic agreement and expects to conclude negotiations during H2" — Citi

** Maintains "buy" rating on target price of A$2.57/shr

** Stock down 23.3% YTD

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk))