JAMES GRZINIC | JEFFERIES
Tesco’s update confirmed not only the significant headwinds the group has had to contend with, but also the shape of a measured profit recovery in the coming year. We are encouraged by management’s clear rebuttal of a need for a UK profit rebasing, to us this would be an unnecessary profit sacrifice.
CLIVE BLACK | SHORE CAPITAL
Whilst a testing time for both Tesco shareholders and ourselves, we still support the strategy, encourage management to keep focused upon improving the performance of its existing store estate whilst constraining capital expenditure on new stores, and building out its online and digital capability.
RICHARD HUNTER | HARGREAVES LANSDOWN
The divergence of views amongst analysts on Tesco’s prospects is striking and reflective of varying levels of belief. Overall, with the turnaround story still a work in progress, the consensus has weakened of late to the shares coming in at a hold, albeit a strong one.