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Tesco: shares jump after Goldman double upgrade.

(CercleFinance.com) - Tesco shares are currently up 4% at 203 pence after Goldman Sachs upgraded the stock from "sell" to "buy," raising its target from 150 pence to 220 pence, saying that the British retailer has stopped inflating below the market, while remaining behind its "Big 4" competitors (Sainsbury's, Asda and Morrisons) in terms of prices.

"Scale and a superior cost savings programme mean we forecast Tesco can continue taking share from the Big 4, supporting like-for-like growth, while reinvesting cost savings at a lower level than in the first half of 2018," Goldman said in a report on UK supermarkets this Tuesday.

This should drive greater margin expansion, the broker said, also highlighting potential synergies from the proposed merger with Booker.

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