Tesco: Berenberg still a buyer
(CercleFinance.com) - Berenberg reinstates its 'buy' rating on the Tesco share, along with its target price of 275 pence, believing that its continued investment in its grocery offer will support gains in market share gains in this segment and Booker's wholesale market share gains will continue.
"Tesco has delivered solid Q1 2021 sales growth, benefiting from the surge of at-home consumption, delivering lfls ahead of expectations," the broker says.
"While COVID-19-related cost headwinds are expected to come at the upper-end of the guidance, we continue to believe this will be offset by food profit tailwinds," it adds.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"Tesco has delivered solid Q1 2021 sales growth, benefiting from the surge of at-home consumption, delivering lfls ahead of expectations," the broker says.
"While COVID-19-related cost headwinds are expected to come at the upper-end of the guidance, we continue to believe this will be offset by food profit tailwinds," it adds.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.