Sainsburys (SBRY)
28/04/2008
BUY Sainsbury - Target 415p
- Entry 370p
- Stop 340p
TIME 4 Weeks Sainsbury's is one of the UK's leading supermarket chains. The stock took quite a hard tumble throughout the last 6 month's from highs of 594p initially triggered by the collapse of the bid from Delta2. The stock was then dragged down further with weak market conditions, as well as ailing sentiment towards retailers. It may well be through the worst and starting to recover. Its key FTSE100 peer Tesco has also recently cited bullish news. On the 26th March Sainsbury also announced a joint venture with British Land as well as a solid set of figures that showed decent growth. It is also worth noting that when Sainsbury's was a potential bid target its estimated net asset value was 400p a share. There is still the remaining possibility of bid interest flaring up again further down the line. John Woolfitt Senior Trader at Galvan says, Technically, they have been forming a neat uptrend since mid March and are moving up from low levels not seen since 2006. The next level of resistance can be seen at 400p but given the solid figures, it has the potential to march through the resistance with 400p becoming support. 
|