Morrisons share price: Supermarket seen better placed than peers

on May 5, 2017
Updated: Oct 21, 2019

Wm Morrison Supermarkets (LON:MRW) is better placed than its supermarket peers in a troubled shopping environment, analyst at Jefferies have said. The comments came after the blue-chip grocer updated investors on its first-quarter performance yesterday, posting a rise in sales.

Morrisons’ share price has jumped in London in today’s session, having added 1.66 percent to 238.30p as of 13.27 BST, outperforming the broader UK market, with the benchmark FTSE 100 index having slipped marginally into the red and currently 0.04 percent worse off at 7,245.39 points. The group’s shares have added nearly a quarter to their value over the past year, and are up by more than three percent in the year-to-date.

Jefferies reiterated its ‘hold’ rating on Morrisons yesterday with a price target of 250p on the stock. The move came after the blue-chip retailer reported yesterday that its like-for-like sales excluding fuel had climbed 3.4 percent in the 13 weeks to April 30. The company, however, experienced inflation due to weakness in sterling.
Citywire quoted the broker’s analyst James Grzinic as commenting that improved customer experience remained the key driver with management having “overhauled all key parts of the proposition in the past couple of years”.
“Consistent improvements in the customer proposition are driving a rebuild in sales densities,” he pointed out. “We are in the early stages of wholesale growth, but this could prove accretive… in due time.”
Grzinic added that Morrisons was “better equipped than peers to face an unhelpfully uncertain UK outlook”.
Beaufort Securities reiterated its ‘buy’ rating on the blue-chip supermarket today, with a price target of 260p on the stock, while JPMorgan Chase & Co remains ‘neutral’ on Morrisons, also valuing the shares at 260p. According to MarketBeat, the FTSE 100 grocer currently has a consensus ‘hold’ rating and an average price target of 211.93p.
As of 13:58 BST, Friday, 05 May, Wm. Morrison Supermarkets plc share price is 239.30p.

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