Bernstein reiterates ‘outperform’ rating ahead of Sainsbury’s full-year results
Analysts remain optimistic about Sainsbury’s share price trajectory ahead of its full-year results next week, with the stock outperforming the broader market amid the COVID-19 crisis.
Analysts remain optimistic about Sainsbury's share price trajectory ahead of its full-year (FY) results next week, despite the stock coming under pressure amid the COVID-19 pandemic.
Bernstein reiterated its ‘outperform’ rating for Sainsbury’s in April, with Barclays Capital sticking with its ‘overweight’ assessment and analysts from Berenberg also staying with their ‘buy’ rating.
According to analysts’ consensus price target of 241p a share, Sainsbury’s has a potential upside of 20% from its current level of 201p.
Sainsbury’s shares have struggled this year, with the stock down 13% year-to-date. However, the supermarket chain is more resilient than the broader market, with the FTSE 100 down 23% over the same period.
Rivals like Tesco and Morrisons, however, have fared far better than Sainsbury’s amid challenging market conditions, with the pair down 8% and 7% respectively.
Sainsbury’s will unveil its FY results on Thursday 30 April.
Sainsbury’s grateful for business rates holiday
Sainsbury’s and other UK retailers have been given a 100% business rates reprieve for the next 12 months by the government, helping to relieve some of the pressure imposed on the supermarket chain as a result of the COVID-19 crisis.
‘We welcome the support for these businesses and we are awaiting further clarification on the details of this change,’ the company said.
Sainsbury’s paid UK business rates of £567 million in the financial year to 9 March 2019, of which around £500 million related to stores.
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