MADRID (MarketWatch) -- U.K. supermarket group J. Sainsbury PLC was cut to sell from neutral and rival
Tesco PLC was cut to neutral from buy on Thursday by Goldman Sachs, which said it sees increasing competition for foot retail. "Following Tesco's profit warning on January 11, we believe the U.K. food retail sector outlook has significantly worsened," said the analysts, who said margin investment announced by Tesco will put "negative pressure on sector profitability." Goldman said the outlook for returns over the next two years has "deteriorated" and sees expansion by Sainsbury and Wm. Morrison Supermarkets PLC as "returns destructive." The analysts added that Premier Foods PLC , Dairy Crest Group PLC , McBride PLC and C&C Group PLC are most at risk from any renewed price action from Tesco or other retailers.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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