Wm Morrison Supermarkets (LON:MRW) is facing a legal challenge, with thousands of staff suing the group over a personal data leak. The news marks another blow for the company after analysts at Berenberg recently initiated coverage of the stock with a ‘sell’ rating, pointing to limited growth opportunities for Britain’s fourth-biggest grocer.
Morrisons’ share price has been steady in today’s session, having added 0.60 percent to 233.70p as of 14:27 BST, slightly outperforming the broader London market, with the benchmark FTSE 100 index currently standing 0.29 percent higher at 7,529.43 points. The group’s shares have added just under seven percent to their value over the past year, and are up by a little over one percent in the year-to-date.
Morrisons faces legal challenge
The BBC reported yesterday that thousands of Morrisons staff were suing the company after their personal details were posted on the internet. The High Court challenge is seeking to make the supermarket chain liable after a member of staff stole the data of nearly 100,000 employees in 2014. Andrew Skelton, who posted the data because of a grudge, was jailed for eight years in 2015.
The workers are claiming compensation for the ‘upset and distress’ caused but Morrisons denies liability. The trial, which is concerned only with liability, is due to last two weeks.
Analysts on Morrisons
The 17 analysts offering 12-month price targets for Morrisons for the Financial Times have a median target of 235.00p on the stock, with a high estimate of 275.00p and a low estimate of 170.00p. As of October 6, the consensus forecast amongst 21 polled investment analysts covering the blue-chip group advises investors to hold their position in the company. Morrisons is scheduled to update the market on its third-quarter performance on November 2.