Sainsbury: Berenberg upgrades to 'buy'

(CercleFinance.com) - Berenberg has upgraded its rating on the Sainsbury's share from "hold" to "buy," saying a couple of catalysts could trigger a rerating of the shares.


"When the Asda deal collapsed, investors re-focused on Sainsbury's weak trading and high leverage, driving a close to 20% derating," the German broker said in a research note.

"However, as the group's balance sheet delevers and its profits grow we believe this will drive a rerating," Berenberg added. The broker has set a new target price of 250 pence for the share, up from its previous 234 pence.

However, this upgrade has failed to lift the stock much, with is up just 0.3% at 202.7 pence in late Wednesday morning trading.

Copyright (c) 2020 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.