Shares in J Sainsbury (LON:SBRY) have been subdued in London this morning, with investors eyeing the grocer’s first-quarter results. The company is expected to post a rise in like-for-like sales during the first three months of its financial year.
As of 10:31 BST, Sainsbury’s share price had lost 0.28 percent to 251.00p, underperforming the broader UK market, with the benchmark FTSE 100 index having climbed into positive territory and currently standing 0.50 percent higher at 7,349.12 points. The group’s shares have added more than six percent to their value over the past year, but have been up by less than one percent in the year-to-date.
Sainsbury’s is due to update investors on its first-quarter performance tomorrow and Interactive Investor reports that Barclays expects the grocer to reveal a 1.5-percent increase in retail like-for-like sales, while analysts at UBS flag a more modest 1.1-percent rise. The forecasts come after the latest Kantar numbers showed that the blue-chip supermarket’s grocery sales had increased 3.1 percent in the 12 weeks ending June 18, having benefitted from online growth at its Local convenience stores.
Investors will also eye an update about the potential acquisition of Nisa, after reports recently suggested that Sainsbury’s had entered into exclusive talks with the convenience shop chain. The blue-chip grocer is thought to have offered £130 million for the convenience shop chain which is owned by its 1,400 members.
The 15 analysts offering 12-month price targets for Sainsbury’s for the Financial Times have a median target of 260.00p on the shares, with a high estimate of 350.00p and a low estimate of 200.00p. As of June 30, the consensus forecast amongst 20 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.