Wm Morrison Supermarkets (LON:MRW) is likely to reveal that its sales grew in the first half of its financial year when it updates investors on its performance next week, analysts have said. The results will come as Britain’s fourth-biggest supermarket continues to recover under chief executive David Potts.
Morrisons’ share price has been little changed in London in today’s session, having gained 0.16 percent to 247.80p as of 14:46 BST. The stock, however, is outperforming the broader UK market, with the benchmark FTSE 100 index having fallen into the red and currently standing 0.45 percent lower at 7,363.71 points. The group’s shares have added just under a quarter to their value over the past year, and are up by some seven percent in the year-to-date.
Morrisons is scheduled to post its interim update on Thursday and Proactive Investors reports that analysts at Barclays expect the supermarket to have grown its first half sales by 5.4 percent to around £8.5 billion. The grocer’s underlying pre-tax profits meanwhile are pencilled to come in at £216 million, as compared with £157 million in the prior-year period.
The update will come after Morrisons inked a wholesale supply deal with McColl’s, with the new partnership expected to take wholesale supply sales to more than £1 billion in due course. The FTSE 100 grocer will supply McColl’s shops, with a phased programme starting in January.
The 15 analysts offering 12-month price targets for Morrisons for the Financial Times have a median target of 235.00p, with a high estimate of 275.00p and a low estimate of 170.00p. As of September 1, the consensus forecast amongst 20 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.