H BOWMAN | HARGREAVES LANSDOWN
“Morrisons has moved to reposition its strategy in line with its major rivals. With the rollout of convenience stores ongoing and its push online now supported by Ocado, management now appear to view its armoury as complete, with group capital expenditure to be reduced.
JONATHAN PRITCHARD | ORIEL SECURITIES
“Morrisons’ decision to reduce capex and return surplus capital to shareholders will be received very well by the market. While there remain issues with core trading, the shares are not going down given the buy-back news...The market will approve on Morrisons’ strategy change.
JAMES GRZINIC | JEFFERIES
“As expected Morrisons reported a mixed first half given the margin effort of reversing the trading pressures seen in the fourth quarter of last year and the increasing revenue costs of growth initiatives. Still...a clear reduction in capex intensity from here onwards point to an improving outlook.