Equities Update: Trainline, BT, Sainsbury’s…

Trainline steams ahead with latest results

Adam Vettese, market analyst at investment platform eToro, says: “Trainline is firmly on track to deliver for shareholders with EPS growth in H1 which has already surpassed the full year performance just gone. Europe’s most popular rail app has invested in its tech and connected different routes and services between providers to great effect with the growth numbers a testament to this.

“Going forward, as more and more companies are asking employees to return to the office, Trainline will also benefit from commuter market recovery which will only bolster its position further. Shares are already up 30% since September and investors will be eying a return to previous highs in the coming months.”

BT lowers revenue guidance amid tough market

Adam Vettese, market analyst at investment platform eToro, says: “BT shareholders enjoying a near 50% recovery in the share price this year from its lows may have had the wind taken out of their sails this morning reading this update. The company has warned that revenue will be lower than previously indicated partly due to tough market conditions. The broadband market is extremely competitive and saturated with choice for consumers and BT has lost out as a result.

“The firm has however maintained its guidance for profit despite the revenue miss and is looking to ramp up its full fibre service to pick up the slack. Investors will be hoping that this is only a blip and shares can regain an upward trajectory towards highs seen early last year and beyond.”

Sainsbury’s Food First strategy beginning to bear fruit

Mark Crouch, market analyst at investment platform eToro, says: “Sainsbury’s shareholders were eager for some good news this morning. After the company’s largest shareholder QIA slashed their holding by a third last month, it left investors feeling uneasy, so a strong earnings report was needed to settle the nerves.

“Despite a slow start, Sainsbury’s “Food First” strategy is now bearing fruit as grocery sales grew by 5%, while sale of the company’s Taste the Difference range jumped by a very encouraging 18%. It wasn’t all good news however as general merchandise and clothing sales dropped, and retail arm Argos saw a 5% dip in sales.

“Investors will be anxious to see the company’s strategy translate into share price performance. Sainsbury’s main rival Tesco has seen their shares reach decade highs in 2024, while Sainsbury’s shares have recorded a double-digit decline. And while Sainsbury’s managed to grow their market share slightly, they cannot afford to rest on their laurels, with budget supermarket chains breathing down their neck, determined to pluck away scraps of market share piece by piece.”