Sainsbury's is a cash generative business with a robust balance sheet, which is expected to support additional returns to shareholders, RBC Capital Markets analysts write. The grocer has the potential to grow ahead of the market in grocery, they say, adding that they're encouraged by work being done to improve Argos's customer appeal. Shares are up 1.8% at 336.50 pence. RBC has an outperform rating on the stock and 375 pence target price. (ian.walker@wsj.com)