Jefferies argues that Wm Morrison Supermarkets (LON:MRW) has been the biggest supermarket beneficiary from the World Cup, Citywire reports. The comments follow the latest Kantar Worldpanel data, which showed a rise in the grocer’s sales in the 12 weeks to July 15.
Morrisons’ share price inched higher in the previous session, adding 0.16 percent to close at 256.00p, underperforming the broader UK market, with the benchmark FTSE 100 index gaining 53.26 points to end the session 0.70 percent higher at 7,709.05. The group’s shares have added more than five percent to their value over the past year, as compared with about a 4.5-percent gain in the Footsie.
Morrisons seen as World Cup winner
Citywire quoted Jefferies analyst James Grzinic as commenting that Morrisons was the “strongest of the quoted players” with gains of 3.3 percent “suggesting that second quarter retail like-for-like has improved a little from the 1.8 percent delivered in the first quarter”. The comments came after Kantar Worldpanel said yesterday that UK supermarket sales had grown at their fastest rate this year, up 3.6 percent in the 12 weeks to July 15.
“We also flag encouraging feedback from McColl’s final results, with Morrison’s wholesale customer highlighting ‘fantastic’ performance by the Safeway brand and bringing forward the completion of its transition to Morrison’s supply to early August,” Grzinic pointed out. Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, commented yesterday that over the past 12 weeks, Morrisons’ premium line ‘The Best’ had outperformed its cheaper own-label options, helping the group “to continue a run of growth stretching back to January 2017”.
Other analysts on blue-chip supermarket
The 13 analysts offering 12-month price targets for Morrisons for the Financial Times have a median target of 240.00p on the shares, with a high estimate of 275.00p and a low estimate of 195.00p. As of July 20, the consensus forecast amongst 19 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.