Sainsbury: UBS upgrades to 'buy'
(CercleFinance.com) - UBS upgraded its rating on Sainsbury from "neutral" to "buy" on Tuesday, noting that Britain's number 3 supermarket group has become a "deeply unloved stock.
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"Sainsbury's retail EBIT margin has more resilience than the market perceives," UBS analysts wrote in a note.
But the broker has also cut its target price for the stock from 245 pence to 240 pence after reviewing the retailer's views on its bank, pensions and the potential impact of Brexit.
Sainsbury's shares have fallen 17% year-to-date, and are currently down 0.2% at 219.6 pence.
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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.
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"Sainsbury's retail EBIT margin has more resilience than the market perceives," UBS analysts wrote in a note.
But the broker has also cut its target price for the stock from 245 pence to 240 pence after reviewing the retailer's views on its bank, pensions and the potential impact of Brexit.
Sainsbury's shares have fallen 17% year-to-date, and are currently down 0.2% at 219.6 pence.
Copyright (c) 2019 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.