Sainsbury: shares move higher after BarCap upgrade
(CercleFinance.com) - Shares in British supermarket group Sainsbury are up almost 2% on Wednesday as a broker upgrade highlighted its appeal ahead of merger with UK rival Asda.
BarCap analysts upgraded the stock from "equal weight" to "overweight" and lifted their price target from 300 pence to 375 pence, saying that the merger "makes sense."
"The question is whether the competition remedies will render the proposed deal uneconomic," Barclays wonders.
The broker reminds that the UK Competition and Markets Authority's decision is unlikely to be finalised until mid-2019.
In mid-morning trading, shares in Sainsbury, which have risen by over 29% so far this year, were up 1.9% at 311.9 pence.
BarCap believes the share is worth 400 pence per share on a merged basis and 285 pence on a stand-alone basis.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
BarCap analysts upgraded the stock from "equal weight" to "overweight" and lifted their price target from 300 pence to 375 pence, saying that the merger "makes sense."
"The question is whether the competition remedies will render the proposed deal uneconomic," Barclays wonders.
The broker reminds that the UK Competition and Markets Authority's decision is unlikely to be finalised until mid-2019.
In mid-morning trading, shares in Sainsbury, which have risen by over 29% so far this year, were up 1.9% at 311.9 pence.
BarCap believes the share is worth 400 pence per share on a merged basis and 285 pence on a stand-alone basis.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.