Tesco: Barclays maintains 'Overweight' rating after results

(CercleFinance.com) - Barclays reinstates its "overweight" rating on the Tesco share, along with its target price of 280 pence, the day after the British retail giant announced H1 operating profit that is about 5.
5% higher than the consensus.

The broker stresses that if this performance was pretty much expected, it also means that the British group has reached its target margin (before IFRS 16 excluding Booker) of 3.5%-4.0%, six months ahead of schedule.

"Overall we see many more positives than negatives in the numbers, but the shine many be taken off by news of Dave Lewis's departure in summer 2020," Barclays says.



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