JPM adds Tesco to its European 'best ideas' list

JP Morgan has added Tesco to its list of 'overweight' best European equity ideas while removing Just Eat and Persimmon from the rankings.

The investment bank also added BAE Systems to its list of ‘underweight’ best ideas, having reiterated that stance on the stock as recently as 12 March.

Tesco's inclusion into JP Morgan's shopping list followed an enthusiastic note from JP Morgan analysts about the supermarket chain in which it highlighted its recent acquisition of Booker.

That transaction, the analysts argued at the time, helped make Tesco a "visible turnaround" story based on cash generation.

Other UK companies JP Morgan ranked as ‘overweight’ best ideas were Ashtead, BP, Diageo, Glencore, London Stock Exchange, Reckitt Benckiser, Standard Chartered and Vodafone. ‘Underweight’ best ideas also include Marks & Spencer, Sainbury’s and Rightmove.