LONDON (ShareCast) - Yet more unfavourable broker coverage was heaped on Wm Morrison Monday morning as JP Morgan downgraded its rating on the supermarket operator to ‘neutral’ from ‘overweight’ with a target price cut to 275p from 320p.
The broker sees considerable pricing pressure in the UK market in the months ahead, with sharply higher fuel costs already having eroded margins.
Citigroup lowered its price target on Wm Morrison to 320p from 375p Friday, the day after a gloomy note from Cazenove.
However it sales momentum, lack of non-food exposure, property backing and low gearing mean JPM still favours Wm Morrison over the other FTSE 100-listed supermarkets, J Sainsbury and Tesco.
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