Tesco: shares continue rising after Wednesday's rally
(CercleFinance.com) - Tesco shares extended gains on Thursday, the day after Britain's biggest retailer smashed earnings forecasts for 2017/2018 and resumed dividend payments.
The stock is currently up 2.9% at 231.9 pence after rising by 7.2% yesterday.
Analysts at German broker Brenberg maintain their "buy" rating on the stock after the report and have increased their target price from 255 pence to 265 pence, saying the supermarket chain is now "firing on all cylinders."
Morningstar's research team also shares this opinion, hailing a "recovery on track".
"The firm has been through one of the worst periods in its history, including an accounting scandal in 2014 and a subsequent drop in margins and growth due to the emergence of discounters in the U.K. food retail industry," the financial research firm wrote in a report.
"However, we find Tesco's turnaround strategy appropriate and feasible, given its leading position in the industry," it added.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The stock is currently up 2.9% at 231.9 pence after rising by 7.2% yesterday.
Analysts at German broker Brenberg maintain their "buy" rating on the stock after the report and have increased their target price from 255 pence to 265 pence, saying the supermarket chain is now "firing on all cylinders."
Morningstar's research team also shares this opinion, hailing a "recovery on track".
"The firm has been through one of the worst periods in its history, including an accounting scandal in 2014 and a subsequent drop in margins and growth due to the emergence of discounters in the U.K. food retail industry," the financial research firm wrote in a report.
"However, we find Tesco's turnaround strategy appropriate and feasible, given its leading position in the industry," it added.
Copyright (c) 2018 CercleFinance.com. All rights reserved.