{"id":66640,"date":"2026-08-04T16:09:10","date_gmt":"2026-08-04T16:09:10","guid":{"rendered":"https:\/\/www.europesays.com\/germany\/66640\/"},"modified":"2026-08-04T16:09:10","modified_gmt":"2026-08-04T16:09:10","slug":"deutsche-bank-lifts-sainsburys-target-to-390p-after-argos-exit","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/germany\/66640\/","title":{"rendered":"Deutsche Bank lifts Sainsbury’s target to 390p after Argos exit"},"content":{"rendered":"

\"Deutsche<\/a> Deutsche Bank lifts Sainsbury’s target to 390p after Argos exit Proactive uses images sourced from Shutterstock <\/p>\n

Deutsche Bank has raised its price target on J Sainsbury PLC (LSE:SBRY)<\/a>\u00a0by 8% to 390p, arguing that a supermarket without Argos deserves a higher rating than one carrying it. <\/p>\n

Analyst Benjamin Yokyong-Zoega lifted earnings per share forecasts by around 2% for the 2028 and 2029 financial years following Friday’s announcement that the group is selling the general merchandise chain. <\/p>\n

Sainsbury’s agreed to offload Argos to Swift Partners, a company set up for the acquisition by former Co-operative Group chief executive Richard Pennycook, ex-Morrisons chief operating officer Trevor Strain and retail technology investor Matt Truman, alongside True Capital. <\/p>\n

Cash proceeds will be at least \u00a3120 million, including a \u00a370 million payment on completion in February 2027 and deferred consideration over three years. <\/p>\n

That is a fraction of the \u00a31.4 billion Sainsbury’s paid for Argos parent Home Retail Group in 2016, and the deal is expected to trigger a non-cash impairment of roughly \u00a3350 million. <\/p>\n

Argos swung to a \u00a3223.2 million pre-tax loss in the 2025 financial year on revenue of \u00a34.1 billion. <\/p>\n

The broker’s argument is that what remains is a less cyclical and more predictable business, which warrants a higher price-to-earnings multiple. <\/p>\n

It remains positive on the core grocery operation, pointing to strong momentum in fresh food, further scaling of Nectar loyalty pricing and retail media income, and new space and reallocation lifting sales density. <\/p>\n

Sainsbury’s will keep commercial ties to Argos after completion, including collection points, the Nectar programme and its Nectar 360 insight and retail media services. <\/p>\n

The company expects income from those agreements to exceed the dis-synergies and lost operating profit from the disposal. <\/p>\n

The stock trades at a 7% discount to Tesco on 2026 earnings and 10% on 2027. <\/p>\n

Deutsche Bank’s new target implies around 10% upside from Friday’s close of 359.4p, and it retains a buy rating. <\/p>\n","protected":false},"excerpt":{"rendered":"Deutsche Bank lifts Sainsbury’s target to 390p after Argos exit Proactive uses images sourced from Shutterstock Deutsche Bank…\n","protected":false},"author":2,"featured_media":66641,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21213],"tags":[50114,21214,39448,50115,3820],"class_list":["post-66640","post","type-post","status-publish","format-standard","has-post-thumbnail","category-deutsche-bank","tag-argos","tag-deutsche-bank","tag-j-sainsbury","tag-sainsbury","tag-target"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts\/66640","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/comments?post=66640"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts\/66640\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/media\/66641"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/media?parent=66640"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/categories?post=66640"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/tags?post=66640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}