J Sainsbury Stock News

Citi has opened a 30-day negative catalyst watch on J Sainsbury PLC (LSE:SBRY), the UK supermarket group, ahead of its half-year results, citing the growing competitive threat from Tesco PLC (LSE:TSCO)'s expansion into on-demand grocery delivery. Tesco launched on-demand grocery delivery through third-party platforms in August and September.

J Sainsbury PLC (LSE:SBRY)'s shares last closed at 322.9p, with Deutsche Bank retaining a 390p price target and a 'buy' rating despite low prospects for a near-term Morrisons deal. Deutsche Bank analyst Benjamin Yokyong-Zoega said Sainsbury's remains a logical strategic buyer in UK grocery retail, but Morrisons' debt burden and regulatory scrutiny are major obstacles.

Sainsbury's , Britain's second-largest grocer, held talks with smaller rival Morrisons about a merger earlier this ​year, according to media reports on Monday.

Deutsche Bank and Citi have both cut their second-quarter grocery sales forecasts for J Sainsbury PLC (LSE:SBRY)'s, the supermarket group, ahead of its half-year results on Thursday 22 October. Deutsche now expects grocery sales to grow 2.7% in the quarter, down from 4%, citing softer market data.

UBS has reiterated its backing for J Sainsbury PLC (LSE:SBRY), the UK's second-largest supermarket, arguing that strong execution should help it keep grabbing market share even in a sluggish grocery trade. The broker kept its buy rating and 395p price target, implying scope for the shares to climb almost a fifth from Friday's close of 335p.

Citi has taken a slightly negative view of Tesco PLC (LSE:TSCO) and J Sainsbury PLC (LSE:SBRY) after Morrisons' latest quarterly results, warning of intensifying competition among the big supermarkets. Morrisons, the privately owned grocer, reported like-for-like sales up 3.2% in the 13 weeks to 26 July, a measure that strips out the effect of new store space.

Shares in J Sainsbury PLC (LSE:SBRY) and Tesco PLC (LSE:TSCO) nudged lower in morning trading after figures showed the heatwave continued to weigh on shopper numbers in July. Total UK footfall fell 2.1% on a year earlier, according to data from the British Retail Consortium (BRC) and Sensormatic, which tracks visitor numbers to retail locations.

Deutsche Bank has raised its price target on J Sainsbury PLC (LSE:SBRY) by 8% to 390p, arguing that a supermarket without Argos deserves a higher rating than one carrying it. Analyst Benjamin Yokyong-Zoega lifted earnings per share forecasts by around 2% for the 2028 and 2029 financial years following Friday's announcement that the group is selling the general merchandise chain.