Deutsche Bank cuts target to 365p for Sainsbury's stock

Published on 10/27/2026 at 12:36 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Deutsche Bank cut its target to 365p on October 27, 2026. Sainsbury's stock costs EUR 4.23 on October 27, 2026 and H1 profit was GBP 525 million.

Analyst caution before peak trading

Deutsche Bank cut its Sainsbury's target to 365p on October 27, 2026.
Underlying operating profit reached GBP 525 million for the 28 weeks to September 12, 2026.
Sainsbury's stock trades at EUR 4.23 at 12:32 p.m. CEST at Lang & Schwarz on October 27, 2026.
Sainsbury's will publish its third-quarter trading statement on January 8, 2027.

Sainsbury's, GB00B019KW72, Illustration mit AI erstellt.

Sainsbury's (ISIN GB00B019KW72) stock was trading at EUR 4.23 at Lang & Schwarz on October 27, 2026 at 12:32 p.m. CEST. Deutsche Bank downgraded the retailer to Hold from Buy and cut its target to 365p from 390p, according to Yahoo Finance on October 27, 2026.

Why the target was reduced

Deutsche Bank cited weaker confidence in grocery volume growth and limited near-term scope for margin improvement ahead of the Christmas trading period. Its forecast for like-for-like sales growth in the second half fell to 1.8 percent from 3.6 percent, while its fiscal 2027 operating profit estimate stayed at GBP 1.052 billion.

The downgrade followed Sainsbury's interim report for the 28 weeks to September 12, 2026. The company reported continuing underlying operating profit of GBP 525 million, up 3.6 percent from GBP 507 million, while underlying profit before tax rose 5.2 percent to GBP 366 million from GBP 348 million, according to Sainsbury's in its October 22, 2026 results release.

What does the guidance mean?

The company raised the lower end of its continuing underlying operating profit guidance to GBP 1.025 billion from GBP 965 million, keeping the upper end at GBP 1.065 billion. That improvement contrasts with slower trading momentum: like-for-like sales excluding fuel grew 1.9 percent in the first half, while grocery sales rose 2.9 percent and general merchandise and clothing sales fell 3.4 percent.

Three events shape the story

On July 31, 2026, Sainsbury's agreed to sell Argos to Swift Partners, with completion expected in February 2027. On October 22, 2026, first-half underlying operating profit reached GBP 525 million and the company raised guidance. On October 27, 2026, Deutsche Bank cut its target to 365p from 390p.

Dates for dividends and results

Sainsbury's said its interim dividend of 4.1p per share will be paid on December 18, 2026, to shareholders on the register at the close of business on November 13, 2026. The company will issue its third-quarter trading statement on January 8, 2027, according to the interim report from Investegate.

Stock price and investor focus

The immediate debate is whether stronger profit delivery can offset weaker volume growth and a narrow margin profile. Sainsbury's reported an underlying operating margin of 3.23 percent for the first half, down from 3.25 percent in the comparable period, leaving cost control and Christmas execution central to the next update.

The further course of trading is shown by the continuously updated real-time quote of Sainsbury's stock.