CLIVE BLACK SHORE CAPITAL
We see this as a steady statement suggesting stabilisation is coming through in the UK, which we find encouraging after sustained underperformance. For the “uber bears” there is no warning, which is an important foundation to the rebuilding of Tesco’s investment credentials.
FREDDIE GEORGE SEYMOUR PIERCE
We continue to believe that Tesco is still a strong business with an unassailable market leading position in the UK that has temporarily come off the rails. Nevertheless it is hard to see anything other than pedestrian earnings growth from the company over the next three years.
PHILIP DORGAN PANMURE GORDON
The sales numbers do not provide significant support for our view that Tesco is fixable. Investors don’t have to look very deeply into the numbers to see some disappointing sales growth despite accelerating investment. But we believe that UK profits will (eventually) improve, as will group returns.