Tesco: Credit Suisse raises target price
(CercleFinance.com) - Credit Suisse maintains its 'outperform' rating on Tesco shares, having increased its target price for them to 306p (from 283p).
The analyst believes that Tesco remains well placed to maintain its market share and that its margins will generate sufficient cash to fund capex and shareholder returns.
Tesco's interim EBIT came in above both Credit Suisse's estimates and the consensus, driven by strong sales growth, a stronger non-food margin mix and lower Covid costs.
Tesco now expects 2021/22 retail operating profit to of between 2.5 and 2.6 billion pounds.
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