Hargreaves Lansdown expects Wm Morrison Supermarkets (LON:MRW) to deliver ‘another positive showing’ when it updates investors on its full-year results next week, the analysts have said. The results will come after the blue-chip supermarket revealed 2.8-percent like-for-like sales growth in its trading update in January.
Morrisons’ share price has climbed higher in London in today’s session, having added 0.84 percent to 227.10p as of 12:03 GMT. The group’s shares are outperforming the broader UK market, with the FTSE 100 standing at 7,203.94 points, flat in percentage terms. The group’s shares have lost nearly two percent of their value over the past year, as compared with about a 1.5-percent fall in the blue-chip index.
HL flags sales growth
Morrisons is scheduled to post its preliminary results on Wednesday and Hargreaves Lansdown expects the blue-chip grocer “to round off its financial year with another positive showing”.
“Growing sales volumes over Christmas is cause for optimism, but investors will nonetheless be looking for assurance that trend is continuing,” the broker’s analyst George Salmon pointed out in a note, adding that Hargreaves Lansdown was also expecting the supermarket to give more detail on the progress of its wholesale supply deal with McColl’s, having been adding 25 stores a week since January.
The results will come after last month, Morrisons also inked a long-term franchise and wholesale supply agreement with SandpiperCI, an operator of 43 mini supermarkets and convenience stores in the Channel Islands.
Analyst ratings update
The 14 analysts offering 12-month price targets for Morrisons for the Financial Times have a median target of 230.00p on the shares, with a high estimate of 275.00p and a low estimate of 170.00p. As of March 6, the consensus forecast amongst 19 polled investment analysts covering the blue-chip supermarket advises investors to hold their position in the company.