RE: tesco6 Dec 2017 18:35
Grocers bagged as Goldman Sachs ups ratings for Tesco and Wm Morrison's
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12:30 05 Dec 2017
The US investment bank upped its stance for Tesco to ‘buy’ from ‘sell’, while boosting its price target from 155p to 220p (current price 201p)
Tesco store
Goldman also upgraded its stance on Wm Morrison Supermarkets to ‘neutral’ from ‘sell
The major grocery stocks were in high demand today after an influential broker turned more positive on the sector.
Tesco PLC (LON:TSCO), up 3.2%, was given the biggest boost by US investment bank Goldman Sachs, which effectively did an about turn on the shares - upgrading to ‘buy’ from ‘sell’, while boosting its price target from 155p to 220p (current price 201p).
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“While Tesco is still passing through less inflation than its big four peers, the data suggests it has stopped inflating below the overall market since August 2017,” analysts at Goldman’s London operation said.
“Scale and a superior cost savings programme mean we forecast Tesco can continue taking share from the big-four, supporting like-for-like [sales] growth, while reinvesting cost savings at a lower level than in the first half.”