Citi does not expect J Sainsbury PLC (LSE:SBRY) to knock it out of the park – quite the reverse, it expects a low-key performance from the grocer.
The bank is sticking to its 'neutral' stance and 300p price target ahead of the retailer's first-quarter trading update, due on 1 July, with forecasts broadly in line with consensus and no change to its full-year earnings estimates or 300p price target.
For the first quarter of the 2026 financial year, Citi expects like-for-like sales excluding fuel to rise 3.2%, just below the company-compiled consensus of 3.4%.
Total sales are seen up 3.8%, again close to the 3.7% consensus figure and slightly below the 4.6% growth in till roll sales reported by Kantar for the comparable period.
Grocery remains the core growth engine, with Citi pencilling in a 3.9% rise in sales, compared to 3.8% from the consensus and 4.6% from Kantar. The bank attributes the slight miss to a combination of trading trends and category shifts.
In general merchandise and clothing, Citi sees a more mixed picture. Sales in these areas are expected to grow 2.0%, well below the 3.2% consensus. While better weather and improved product ranges should support clothing, general merchandise is still feeling the effects of space reallocation within stores.
Argos is forecast to deliver 3.5% sales growth for the quarter, narrowly missing the 3.7% consensus. Favourable weather and an easier comparison base are expected to help performance, though momentum remains modest.
On the back of these slight adjustments, Citi nudges its earnings per share estimates for 2026 and 2027 up by just 0.1%.
In afternoon trading, the shares were static at 286.6p.