- Sainsbury (J)
- 27 April 2026 10:32:40
Source: Sharecast
Goldman said that while full-year EBIT and free cash flow were in line with its expectations, with grocery sales up 5.2% and a 3% retail margin, the outlook from here is likely to be more challenging.
"This view stems from our recently downgraded UK HAC growth forecast, now just +0.6% year-on-year (the lowest since 2009, ex-Covid), and rising intentions to save (April GfK).
"In this context, we forecast another year of circa flat retail EBIT, assuming still elevated price inflation and grocery EBIT growth, offset by a -2% FY27E Argos LFL (FY26 +1%) and EBIT decline given the both demanding macro outlook, and growing competitive intensity."
Goldman noted that recently-launched Joybuy - a UK and European e-commerce platform owned by China’s JD.com - already had 300,000 active users in March.
"Taken together, we reduce FY27E/28E EBIT -4%/-6% and target price to 335p," the bank said. "With our new TP implying circa 3% downside versus sector average +14% upside, we move to a sell rating on the shares."
At 1030 BST, the shares were down 3.1% at 333.92p.