TSX gains after CPI shows US inflation rose 3%
Investing.com - JPMorgan downgraded Sendas Distribuidora SA (ASAI3:BZ) from Neutral to Underweight on Wednesday, while lowering its price target to R$8.50 from R$11.50.
The downgrade reflects JPMorgan’s expectation of a more challenging growth environment for the Brazilian food retailer through the end of 2025 and into 2026, particularly regarding top-line performance.
JPMorgan cited a steady deterioration in sales trends across food retailers in recent months, combined with an anticipated deceleration in food inflation through mid-2026, creating a difficult pricing scenario for the company.
The bank noted two specific market challenges: the industry’s struggle to grow volumes and strong trade-down trends with limited consumer response to promotional activities, making a significant volume recovery unlikely as inflation decreases.
JPMorgan warned that same-store sales could turn negative in the first half of 2026, limiting potential margin improvements despite the company’s efficiency initiatives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.