Shares in J Sainsbury PLC (LSE:SBRY) were downgraded by Citi as analysts reckon elevated food inflation and cost of living pressure dampen the bull case.
Removing its ‘buy’ rating and shifting to a ‘neutral’ stance instead, the US bank also cut its price target to 295p from 320p.
SBRY shares have risen over 27% since the end of December, which is stronger that the performance at rival Tesco.
Analysts said “Sainsbury has done little wrong” and has executed its strategy to drive value and take cost out.
However, guidance for a flat to ‘small down' performance this year, consistent with peers, and shares trading for 13 times March 2025 earnings, “ahead of others already buying back shares”, the analyst said they “move to the sidelines” and downgrade.