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.


Copyright (c) 2021 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.