Tesco Share Chat (TSCO)

Bryan Garnier raises Tesco price target to 404 (386) pence - 'buy'

Industry leader Tesco (TSCO.L), opens new tab saw sales growth of 5.2% and its market share rose 60 basis points to hit 28.0%, its largest share since December 2017.

I can't see Marshall Wace on the short tracker anymore. Have they closed their position?

JoanneSu (as posted on RR&BT..)

Sorry a (- 6) for me because of the following:

* AIM Listed

* Penny stock

* Does not have a meaningful market cap (£5M)

* Has less than 1 year of cash runway

* Highly volatile share price over the past 3 months compared to the UK market

* Shareholders have been diluted in the past year

Maybe you have 6-10 buy reasons to share?

JoanneSu

Sorry a (- 6) for me because of the following:

*AIM Listed

*Penny stock

*Does not have a meaningful market cap (

*400 As originally correctly envisioned by the Jimjam BTW GLA

Fools.. Nice greens indeed looks like the tea leaves are brewing a green branch punch at the 389 level once above this target we are aiming for numero 4 😊

Nice and green on Monday, what you thinking 🤔

Reduced again to .48%

All Positive

UBS has reaffirmed its 'buy' recommendation on Tesco, with a price target raised from 400 to 410 pence, a new target with 13% upside potential for the stock, the day after the British food retailer's half-year results.

A solid first-half publication and a cautious outlook for the second half point to upside potential in the short term, while the strengthening of alternative earnings sources supports medium-term potential," the broker believes.

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Barclays raises Tesco price target to 405 (375) pence - 'overweight'

Goldman Sachs raises Tesco price target to 420 (370) pence - 'buy'

UBS raises Tesco price target to 410 (400) pence - 'buy'

The contrast with today could not be starker. Thursday’s strong half-year numbers were accompanied by a forecast that the full-year tally for “retail adjusted operating profit”, Tesco’s slightly odd preferred metric, will be £2.9bn, about £100m better than the last time it spoke. Given the group’s recent habit of under-promising, nobody will be surprised if the round number of £3bn is reached

Yeah decent results. Been on a very good run since lows sub 200 in Oct 2022. Good momentum.

The SP has been depressed for over a decade now as a hangover from the accounting scandal. Those people are all long gone, and once again trust is returning from IIs.

Focusing on making it's core businesses as healthy as possible has helped enormously too, combined with a fledgling side business as a consultancy and licensing out online grocery shopping for foreign retailers which definitely seems to be the way forward instead of directly challenging established businesses abroad where the upfront cost and risk is enormous.

That's my view for the first half of '25. JJ

Even so, this has done little to constrain a share price which has risen by 36% over the last year, as compared to a gain of 11% for the wider FTSE100, and by 72% over the last two years. Despite this rally, the shares remain below the longer-term historic valuation, which suggests room for further appreciation. In the meantime, the longstanding market consensus of the shares as a strong buy and the preferred play in the sector is unlikely to waver.

Tesco continues to dominate the British aisles through a mixture of relentlessly competitive pricing and innovation.

At present, the group’s market share remains at 27.8%, which is equivalent to that of its nearest rivals (Sainsbury (J)

SBRY

1.31%

and Asda) combined. Its sheer scale feeds its appetite for lowering prices for customers through the likes of Aldi Price Match, Low Everyday Prices and Clubcard Prices, while a strong focus on significant cost reduction creates something of a virtuous circle.

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In the 26 weeks ended 24 August 2024, revenue grew by 2.9% to £34.77 billion, slightly above estimates, while adjusted operating profit rose by 15.6% to £1.65 billion, comfortably ahead of expectations of £1.53 billion. The strength of this first-half performance has also led Tesco to upgrade its forecast for the full year, where it now expects adjusted operating profit of £2.9 billion, compared to the figure of at least £2.8 billion which it previously guided.

The range of the group’s offering is not limited to the more cost-conscious consumer, and more recently Tesco has honed its upper-end offering, with a subsequent rise of 19.9% in Finest volumes compared to the previous year. It continues to attack the competition on all fronts, with growth of 4.2% in large store sales and a further 9.3% increase in online revenues, which account for 13.5% of the group total. In addition, its Clubcard is now in front of 23 million households within the UK, while its Home & Clothing unit has swung to positive growth of 0.3% after what had been a challenging period.

Inevitably challenges will remain, even though Tesco is on the front foot to face them. Consumers have yet to see the full benefits of falling inflation, although wage increases have offset some of these challenges. The group’s Booker unit reported a dip in sales of 1.9%, largely driven by ongoing tobacco market weakness and lower volumes through its Best Food outlet, although at 13% of overall revenues the impact is more than offset by strength elsewhere in the business.

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At the same time, the group is also bearing down on costs, with a saving in the first half of £260 million leaving the full-year target of £500 million well within sight. Indeed, some of the investment in lowering grocery prices was previously enabled by a parallel concentration on cost reduction announced at the full-year results in April, where £640 million of savings was delivered against a target of £600 million.

The impact of Tesco’s prodigious cash generative ability also feeds through to improving the financial strength of the business. Net debt was reduced by 2% in the period to £9.7 billion, free cash flow for th

Very impressive and going to into the strongest 1/4 of the year

And happy with the div. JJ

Https://www.londonstockexchange.com/news-article/FE80/tesco-plc-interim-results-2024-25/16696844

Down to 0.59%

Marshall Wace Llp short position has been reduced again. Good news

​Looking ahead, Tesco faces both opportunities and challenges. The company's retail free cash flow is expected to decrease to £1.4-£1.8 billion due to working capital and cash tax considerations. However, the retail operating profit guidance of at least £2.8 billion suggests potential for upward revision. The disposal of capital-intense parts of Tesco Bank to Barclays, while reducing the expected profit contribution to £80 million, aligns with a strategy of focusing on core retail operations. Additionally, the £1 billion share buyback programme is set to boost earnings per share, potentially enhancing shareholder value.

Looking forward to some really good news. With the buy back in operation I'm expecting an increased div. JJ