SAINSBURY -J.- ADR/4 NEW

Last week the market wiped out £1.5 billion of the valuations for Tesco PLC (LSE:TSCO) and J Sainsbury PLC (LSE:SBRY) due to worries that the industry will see profits squeezed amidst rising costs and changing interest rate expectations, but for investors JPMorgan sees "10 reasons to buy the dip".    The bank noted that this penalisation was despite underlying increases in forecasts for the companies and both the pair's positive post-Christmas reports in the week as well as the current market dynamics.» Mehr auf proactiveinvestors.co.uk

Despite a sell-off triggered by QIA's massive share sale last year, Sainsbury's fundamentals remain strong with consistent grocery market share gains and potential future margin accretion. While GM faces headwinds, the company's core grocery business shows robust volume growth, with its Nectar loyalty program hitting record participation levels. Management's strategic initiatives, cost savings, and strong tailwinds from expected positive real wage growth support an upgraded price target, as we believe the stock to be underappreciated.» Mehr auf seekingalpha.com

J Sainsbury has been a pretty soft performer since my last update, underperforming close peer Tesco by over 30 points in that time. The company appears to be executing well, gaining market share even as the traditional full-line grocers lose ground to discounters. Sainsbury is very much the number two player behind Tesco. Although its profitability is weaker, this is more than reflected in their respective valuations.» Mehr auf seekingalpha.com