Morrisons share price: where next ahead of its H1 results?
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 Morrison.com operations too,’ Shore Capital added.
How to trade stocks with IG
- Create an IG trading account or log in to your existing account
- Enter ‘Morrisons’ in the search bar and select it
- Choose your position size
- Click on ‘buy’ or ‘sell’ in the deal ticket
- Confirm the trade
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.