Barclays reinstates Tesco at 'overweight' on expected outperformance in 2021
Tesco
362.20p
16:55 04/10/24
-0.49%
-1.80p
Analysts at Barclays reinstated their 'overweight' recommendation for shares of Tesco on Monday, pointing to the shares' underperformance across 2020 and multiple tailwinds.
Food & Drug Retailers
4,548.70
17:14 04/10/24
-0.36%
-16.42
FTSE 100
8,280.63
16:49 04/10/24
n/a
n/a
FTSE 350
4,570.17
17:14 04/10/24
n/a
n/a
FTSE All-Share
4,527.24
16:54 04/10/24
n/a
n/a
During the preceding year, the shares had delivered a total shareholder return of -7.0%, against -6.7% for rival Morrison and 1.1% over at Sainsbury.
That was despite the grocer's exit from Asia and accompanying £5bn cash return, as well as the end of the sizeable drag on its free cash flow from pension top-up payments, they highlighted.
Furthermore, food retail was "far from the worst hit" by the pandemic, they added.
Barclays placed a 290.0p target on the firm's shares.