Sainsbury’s share price: what to expect from its Q3 trading update?
The British supermarket chain will unveil its third quarter results on Wednesday, with investors hoping the festive season will give Sainsbury’s and its share price a boost.
Sainsbury's will unveil its third quarter (Q3) results on Wednesday, with investors expecting the supermarket chain to get a boost over the Christmas period that could send its share price higher.
A sales boost over the Christmas period will be welcomed by Sainsbury’s and investors alike after UK supermarkets saw revenue growth slow in the 12 weeks to December 1.
The slump in sales was caused by uncertainty over the general election, a ‘lacklustre’ Black Friday and a wet autumn delaying consumers Christmas preparations, according to research carried out by Kantar.
Morrisons performed worst out of the big four UK supermarkets, with sales down 2.9% over the 12-week period. Meanwhile, Asda fell 1.9%, Sainsbury's sales slipped 1.1% and Tesco tumbled 0.8% lower.
Sainsbury’s is trading at 255p a share as of 13:35 GMT on Monday.
BNP Paribas upgrades Sainsbury’s rating to ‘outperform’
Analysts at BNP Paribas are optimistic about Sainsbury’s, with the bank upgrading its rating for the stock from ‘neutral’ to ‘outperform’ in December, leaving its price target unchanged at 260p a share.
Based on Sainsbury’s trading at 255p, analysts at the French bank believe the stock has a potential upside of 1.9%.
If Sainsbury’s is able to produce a strong set of results in its upcoming trading update on Wednesday, the stock could potentially break through 260p levels.
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