Analyst Cuts Sainsbury Price Target to 335p and Maintains Sell on Rising Consumer and Competitive Pressures

Goldman Sachs analyst Richard Edwards downgraded the rating on J Sainsbury plc to a Sell today, setting a price target of p335.00.

Richard Edwards has given his Sell rating due to a combination of factors that point to a tougher environment ahead for J Sainsbury. Although recent results broadly matched expectations, he anticipates UK consumer spending to slow sharply, with weaker household consumption growth and rising saving intentions limiting top-line momentum and profit expansion.

Edwards also flags increasing competitive pressure in the non-food segment, particularly at Argos, where he now expects like-for-like sales to turn negative and EBIT to decline. Factoring in these headwinds, he cuts his EBIT forecasts for FY27 and FY28 and lowers his price target from 390p to 335p, seeing modest downside for the shares compared with attractive upside elsewhere in the sector, which supports his Sell stance.

Edwards covers the Consumer Cyclical sector, focusing on stocks such as PUMA SE NPV, JD Sports Fashion, and On Holding AG. According to TipRanks, Edwards has an average return of -3.7% and a 46.23% success rate on recommended stocks.