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Tesco Page 3
Tesco (TSCO)
The UK’s largest supermarker by market share, Tesco may not wield the same power that it had before the financial crisis. However, this now means that single share will set you back less than £2 to purchase. The supermarket giant, under the supervision of CEO Dave Lewis, has continued to maintain market share despite the rise of continental discount stores Aldi and Lidl, and has also navigatged a settlement with the SFO over its 2014 accounting scandal. With the trial over and done with, can the supermarket focus what it does best?
Will shares rally to fresh highs of 220p (+21%) or pull back towards August lows of 155p (-15%)?
- Shares in narrowing pattern. Break higher or another leg lower?
- Brokers are split, with just over half expecting the price to rise despite 42% suggesting ‘sell’
- Momentum turned negative; Stochastics approaching oversold
- Directional Indicators diverging bearishly
Broker Consensus: 29% Buy, 29% Hold, 42% Sell
Bullish: HSBC, Buy, Target 260p, +43% (13 Apr)
Average Target: 200p, +10% (8 Jun)
Bearish: Credit Suisse, Underperform, Target 145p, -20% (26 May)
Pricing and consensus data sourced from Bloomberg on 8 June. Please contact us for a full, up to date rundown.
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Prepared by Michael van Dulken, Head of Research
