Sainsbury: Morgan Stanley resumes coverage with 'weight in l

(CercleFinance.com) - Morgan Stanley has resumed its coverage of the share of British food retailer Sainsbury with a "weight in line" rating and a target price of 215 pence, saying that it prefers its peer Tesco.


Although the share price has fallen by 25% y-t-d, and while its valuation appears to be cheap relative to past levels and its peers, the broker prefers to "stay on the sidelines" regarding the share.

"We think price reinvestment will be key to regaining competitiveness and our scenario analysis suggests there are levers to pull, but it will take time to change customers' perceptions," it says.



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