Food focus delivers

Research evidence excerpt

Food focus delivers

Deutsche Bank Group

Deutsche Numis Research

Rating Company Date

Buy Sainsbury's 30 June 2026

Forecast Change

Europe

United Kingdom

Reuters Bloomberg Exchange Ticker Price at 30 Jun 2026 (GBP) 319.80

SBRY.L SBRY LN LSE SBRY

Price Target (GBP) 360.00

Retail

Retail - Food ADR ISIN 52-week range (GBP) 359.40276.80-

JSAIY US4662492085

Valuation & Risks

Benjamin Yokyong-Zoega

DB View Research Analyst

Sainsbury's are executing well and outperforming a softer UK grocery market, +44-20-754-12338

driven by improved availability (both in stores and online), value credentials and

Adam Cochrane

customer satisfaction. We stay constructive on the positive momentum in the core Research Analyst

grocery business. Weakness in GM & Clothing sales was partially driven by planned +44-20-754-17812

space re-allocation and, while cyclical risks remain, we are incrementally positive

Do-Hyun Yoo

on the outlook for Argos after an encouraging start against a tough comp. We

Research Associate

nudge up our FY27 EBIT forecast from £1,060m to £1,065m. Shares trade at a 14.0x

+44-20-754-19487

Cal-26 P/E and 7.7% FCF yield. Our unchanged 360p TP implies 12% upside. Buy.

Shwetha Ramachandran

Food focus drives volume growth

Positive volume growth underpinned further share gains in the UK grocery market.

Customer satisfaction scores have improved against competitors, with quality Price/price relative

perceptions closing the gap towards premium peers. Premium Taste the Difference

sales grew 6% yoy and 25% over two years, supported by product innovation. c.3%

of GM space has switched to food yoy, which drives higher overall trading density. 300

EBIT growth ambition on track 200 2024 2025 2026

Management's ambition to grow Retail EBIT remains on track, implying a positive