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HSBC cut its price target for the supermarket from 300p to 260p due to the structural changes in the sector and the need for Tesco for take decisive action such as investing its margin before it’s eroded. The broker cut its earnings forecast next year by seven per cent and 10 per cent for 2015.
JP Morgan cut its target price for the consumer goods company from 4,450p to 4,250p with a “neutral” rating due to an expected weak first quarter. The broker said the potential acquisition of Merck could be a boost for the firm, but losing out on it would be a setback for reducing risk.