Deutsche Bank and Citi have both cut their grocery sales forecasts for Sainsbury's ahead of its half-year results on 22 October.
Deutsche now expects grocery sales at the supermarket chain to grow 2.7% in the second quarter, down from its previous forecast of 4%.
The broker said the cut reflected softer market data.
Citi trimmed its forecast to 3% from 4.3%, below the market consensus of 3.3%, on the assumption that food inflation slowed from the first quarter.
Market data flatters
Worldpanel, the market research firm, showed Sainsbury's grocery sales rising 3.6% in the 12 weeks to 6 September.
Citi expects the actual figure to come in about 0.6 percentage points lower, as the industry data has overstated Sainsbury's sales in the past.
The broker was gloomier on general merchandise and clothing, forecasting a 3.2% fall in sales against consensus of a 1.4% decline.
It blamed shop space being switched to food, a tough comparison with last year's clothing sales and a weak consumer backdrop.
Profit outlook steady
Deutsche forecasts a 3.1% rise in first-half underlying operating profit to £525 million from continuing operations.
It expects Sainsbury's could narrow its full-year profit guidance of £975 million to £1,075 million.
Citi forecasts full-year underlying operating profit of £1,043 million, slightly below consensus of £1,058 million.
It expects a smaller contribution from Sainsbury's Bank, the financial services arm, to be offset by the grocer spending less on price cuts.
Split on the shares
Deutsche kept its buy rating and 390p target, which implies 16% upside from Friday's close of 337p.
It said the sale of Argos had reduced Sainsbury's exposure to the economic cycle and left a cleaner business.
The shares trade on 14.7 times this year's expected earnings, according to the broker.
Citi kept its neutral rating but nudged its target price up to 352p from 346p after raising its sales forecasts for the 2028 financial year.
