CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Morrisons share price: where next ahead of its H1 earnings?

The British supermarket chain will unveil its half-year results on 10 September, with investors eager for an update on its performance to give an indicator of how it will emerge from the coronavirus pandemic.

  • Morrisons set to unveil its half-year (H1) results on 10 September
  • The British supermarket chain is ready to battle it out in upcoming autumn price war
  • Morrisons expands partnership deal with Amazon

Morrisons shares have remained relatively resilient amid the coronavirus pandemic, with the stock just 5% down year-to-date, while first quarter (Q1) sales climbed 5.7% despite the ‘highly volatile’ trading environment.

However. the direction of the British supermarket chain’s share price will be determined by its upcoming half-year (H1) results on 10 September, with investors eager for an update on the company’s performance amid a myriad of challenges.

‘We are facing into the unprecedented current challenges and are playing our full part to help feed the nation: working with determination, creativity and pace to serve customers as well as we possibly can,’ Morrisons CEO David Potts said in its Q1 trading update.

Morrisons readies itself for Autumn price war

Morrisons, along with its rivals, is gearing up to reduce prices on hundreds of its products as the sector gets ready for an Autumn price war.

The British supermarket chain said that it plans to cut prices on various products by as much as 23% on average, with many of its rivals embarking on similar cost-cutting measures in a bid to attract consumers in need of cheaper food items amid the economic fallout of Covid-19.

Barclays believes Morrisons share price is fair value

Analysts at Barclays believe Morrisons share price is trading close to fair value, with the bank reiterating its ‘underweight’ rating and issuing a target price of 196p per share.

Based on the Morrisons closing at 192p per share, Barclays assessment implies a potential upside of just 2%.

Morrisons expands grocery deal with Amazon

Over the long-term, Morrisons deal with Amazon could help drive sales at the supermarket chain, with the pair recently expanding their partnership to cover its full range of products.

The supermarket chain's products already appear on Amazon’s ‘Fresh’ and ‘Prime Now’ services, but the extended partnership it will allow shoppers to get all their items delivered, with an initial trial beginning in Leeds.

‘For Morrison we see this development as a complementary move that deepens its online penetration of the UK online grocery market in a capital light manner,’ analysts at Shore Capital said in a note.

‘In particular, it potentially expands the reach of the brand to households where there have not been traditional Morrison shoppers perhaps, most notably maybe in relatively under-represented postcodes in Great Britain.’

‘As such, we see this further move with Amazon as being largely incremental to the group's current offline and operations too,’ Shore Capital added.

How to trade stocks with IG

Looking to trade Morrisons and other stocks? Open a live or demo account with IG and buy (long) or sell (short) shares using derivatives like CFDs in a few easy steps:

  1. Create an IG trading account or log in to your existing account
  2. Enter ‘Morrisons’ in the search bar and select it
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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