Deutsche Bank lifts Sainsbury's target to 390p after Argos exit

What Brokers Say Retail & Consumer Written by: Ian Lyall 16:15 Tue 04 Aug 2026 --> Edited by: Oliver Haill Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Ian Lyall Ian Lyall, a seasoned journalist and editor, brings over three decades of experience to his role as Managing Editor at Proactive. Overseeing Proactive's editorial and broadcast operations across six offices on three continents, Ian is responsible for quality control, editorial policy, and content production. He directs the creation of 50,000 pieces of real-time news, feature articles, and filmed interviews annually. Prior to Proactive, Ian helped lead the business output at the Daily... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. J Sainsbury PLC ( LSE:SBRY ) View Price & Profile Deutsche Bank lifts Sainsbury's target to 390p after Argos exit Published: 16:15 04 Aug 2026 BST Deutsche Bank has raised its price target on J Sainsbury PLC (LSE:SBRY) by 8% to 390p, arguing that a supermarket without Argos deserves a higher rating than one carrying it. 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. 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. Cash proceeds will be at least £120 million, including a £70 million payment on completion in February 2027 and deferred consideration over three years. That is a fraction of the £1.4 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 £350 million. Argos swung to a £223.2 million pre-tax loss in the 2025 financial year on revenue of £4.1 billion. The broker's argument is that what remains is a less cyclical and more predictable business, which warrants a higher price-to-earnings multiple. 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. 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. The company expects income from those agreements to exceed the dis-synergies and lost operating profit from the disposal. The stock trades at a 7% discount to Tesco on 2026 earnings and 10% on 2027. Deutsche Bank's new target implies around 10% upside from Friday's close of 359.4p, and it retains a buy rating. Continue reading