Broker snap: S&P sees tough times ahead for Morrisons

9th Sep 2010 10:51

Standard & Poor's keeps its 'hold' rating on Morrisons after the supermarket unveiled its first half results.The broker thinks that tough times could be in store for the whole supermarket sector.'We believe the current, historically high level of promotional activity in the UK is set to continue as businesses compete to maintain customer traffic in the face of sliding consumer confidence,' the broker said.'As we move into H2, price increases in global food commodity markets are likely to be reflected in renewed inflation, and strategies as to how to pass on the cost to consumers will have to be revisited.'The broker thinks that new chief executive Dalton Philips will review the company's strategy once he has been at the helm for a while longer.S&P has a 315p target price on Morrisons.