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On Thursday, Jefferies analysts downgraded J Sainsbury PLC (LON:SBRY:LN) (OTC:JSNSF) stock from a Buy to a Hold rating, while maintaining a price target of GBP3.00. The decision comes as a direct response to the company’s recent share performance, which analysts believe limits the near-term potential for further upside.
The analysts at Jefferies have expressed their unchanged outlook on J Sainsbury’s market share opportunities for the fiscal years 2025/2026. They acknowledge the company’s continued growth in food space and an elevated cost-saving program that they anticipate will contribute to earnings resilience throughout the current year.
Despite the downgrade, Jefferies’ estimates (ests) and price target (PT) for J Sainsbury remain the same, with a projected forward currency yield (FCY) of 8.9%. The analysts have clarified that the change in rating is solely based on the stock’s recent outperformance, not on a shift in the company’s fundamental valuation or future prospects.
J Sainsbury has been focusing on expanding its presence in the food sector and implementing cost-saving measures, which are expected to support its financial stability. This strategic approach is recognized by Jefferies as a positive factor for the company’s earnings potential.
The price target set by Jefferies indicates their expectation of where the stock price could potentially stabilize, based on the current analysis. With the recent surge in J Sainsbury’s share price, investors are now provided with a revised outlook from Jefferies, reflecting the current market conditions and the stock’s performance.
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