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Investing.com - JPMorgan has raised its price target on J Sainsbury PLC (LON:SBRY) to GBP3.63 from GBP3.30 while maintaining an Overweight rating ahead of the company’s first-half 2026 earnings report.
The investment bank placed the stock on Positive Catalyst Watch in anticipation of the November 6 earnings announcement, citing "solid execution" at the British supermarket chain.
JPMorgan upgraded its first-half EBIT estimates by approximately 6.5% and fiscal year 2026 estimates by around 5.5%, positioning its forecast about 10% above both company guidance and consensus for retail adjusted operating profit of approximately £1 billion.
The bank’s analysts noted three key factors supporting their thesis on UK grocers: a rational competitive backdrop, substantial capital returns, and an appealing setup with earnings and valuation upside risk.
Despite acknowledging Sainsbury’s valuation discount compared to competitor Tesco (LON:TSCO), JPMorgan highlighted a "slow, yet steady turnaround" at Argos, the general merchandise retailer owned by Sainsbury’s, with supportive industry data complementing self-improvement initiatives.
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