JSAIY J Sainsbury Plc (QX)

J. Sainsbury may face a tough task to hit full-year earnings targets, Jefferies says, after the U.K. grocer reported a GBP41 million fall in underlying profit to GBP238 million. Jefferies says Sainsbury's interim results were always going to be uneventful given the company's first-half guidance. Sainsbury's ability to convince investors that it can achieve a 60/70 basis-point swing in 2H margin to hit its re-confirmed full-year pretax profit target of GBP632 million will be more critical, the brokerage says. "The change in direction may prove a tall order, absent a potential inflection in U.K. trading conditions," Jefferies analysts say. "We would rather own Tesco and Morrisons." Shares rise 1.75%. (philip.waller@wsj.com)

(END) Dow Jones Newswires

November 07, 2019 04:01 ET (09:01 GMT)

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