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Sainsbury’s recovery looks distant

The supermarket group is the UK market's fourth most shorted stock
Sainsbury’s recovery looks distant

Few executives would envy the situation J Sainsbury’s (SBRY) new boss, Simon Roberts, finds himself in. Things were not looking too bad when his appointment was announced at the start of the year. However, a lot has changed since, as reflected by a surge in disclosed short interest from 3.6 per cent at the end of 2019 to 8.3 per cent now, which makes Sainsbury’s shares the fourth most shorted on the London market.

IC TIP: Sell at 186p
Tip style
Sell
Risk rating
High
Timescale
Medium Term
Bull points

Focus on 'value'

Low share valuation

Bear points

E-commerce will hurt margins

High debt

Sainsbury Bank may need further support

High and rising short interest

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