Citigroup says Morrison is its preferred name in the UK supermarkets by virtue of its strong FCF/sales growth characteristics. It upgrades its recommendation on the stock from sell/medium risk to buy/low risk.
'The change in our risk rating to low from medium reflects our sense that any food deflation risk has passed: we think Morrison is lower-risk than its UK peers by virtue of its low financial and operational leverage.'
Since initiating coverage on UK supermarkets in October with sell recommendations on all three names, Citi says the FTSE 100 has advanced 11.7% and the re-rating of the market requires a review of its target prices.
Morrisons is revised up from 265p to 320p.
Citi raises its Sainsburys target price from 300p to 320p but retains the sell recommendation.
Tesco's target price rises from 360p to 400p; retains sell.
Story provided by Business Financial Newswire
© 2012 IBTimes Company. All Rights Reserved.
Partners 
EMAIL
PRINT
RSS
SHARE
