Barclays reinstates Tesco at 'overweight' on expected outperformance in 2021
Tesco
345.60p
14:09 19/11/24
-0.66%
-2.30p
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
4,375.74
14:09 19/11/24
-0.35%
-15.58
FTSE 100
8,062.03
14:10 19/11/24
n/a
n/a
FTSE 350
4,448.29
14:10 19/11/24
n/a
n/a
FTSE All-Share
4,406.38
14:10 19/11/24
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.