Tesco: J.P. Morgan now a buyer
(CercleFinance.com) - J.
P. Morgan has adopted a "buy" rating on the Tesco stock for the first time in five years, saying that the Booker deal will be "transformational" for the group, although not yet reflected in the consensus' estimates.
The broker - which has a 265 pence target price for the share - believes Booker adds new addressable market potential and strong execution capabilities with executive Charles Wilson now at the helm.
J.P. Morgan now sees Tesco as a "visible turnaround" story, with moving parts in management, synergies, and cost savings, adding that over time, the market will shift its view on the retailer.
Tesco shares were up 2.5% at 215.7 pence after these comments.
Copyright (c) 2018 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.
P. Morgan has adopted a "buy" rating on the Tesco stock for the first time in five years, saying that the Booker deal will be "transformational" for the group, although not yet reflected in the consensus' estimates.
The broker - which has a 265 pence target price for the share - believes Booker adds new addressable market potential and strong execution capabilities with executive Charles Wilson now at the helm.
J.P. Morgan now sees Tesco as a "visible turnaround" story, with moving parts in management, synergies, and cost savings, adding that over time, the market will shift its view on the retailer.
Tesco shares were up 2.5% at 215.7 pence after these comments.
Copyright (c) 2018 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.