Broker tips: Sainsbury's, Premier Foods

"Against the backdrop of elevated food inflation and the cost of living crisis, Sainsbury has done little wrong, executing on its strategy to drive value into its offer and take cost out," Citi said.

"However, with a flat to ‘small down' year-over-year guide (consistent with peers) and a 13x FYMar25E PER ahead of others already buying back shares, we move to the sidelines."

Elsewhere, Jefferies upped its price target on Premier Foods following a strong full-year performance.

The broker, which has a ‘buy’ rating on the owner of Mr Kipling and Oxo, increased its target price to 175p from 140p.

It also upgraded its forecasts for 2024 full-year trading profits by just over 1% to £164.2m.

Lead analyst Martin Deboo, in his last note before retiring, said: "The shares are more or less flat on a useful full-year 2023 beat, confident 2024 guidance and a change in pension guidance worth a notional 15p per share.

"Perhaps more of this was priced in than we thought, but this feels underdone to us."

He added that in recent years, Premier Foods had become what it was "always meant to be: a UK-centric branded grocery business with a tight focus on its categories and customers and a strategy to grow in what are mature markets".

"Getting there has required patient work by refreshed management teams and many dedicated employees - helped by a Covid windfall - often in the face of opprobrium by the market.

"It’s a strategy that, in our view, has further to go. I leave the scene with a glad heart."

Earlier this month, Premier Foods reported adjusted full-year pre-tax profits of £137.2m, a 13% hike, while branded and non-branded revenues rose 9% and 28% respectively.