Evolution Securities rates the supermarket “sell” with a target price of 375p. The broker expects to see 7.5 per cent growth in group turnover when Tesco reports first quarter figures on Tuesday, with international gains making up for flat underlying UK like-for-like sales. Evo thinks Tesco is underperforming the UK market and has concerns about its expansion plan.
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Nomura rates the Argos owner “reduce” with a lowered target price of 160p. The broker has cut its full year earnings estimates by 18 per cent after last week’s results, and sees ongoing negativity in the firm’s consumer markets, particularly electronics. Nomura thinks Argos’ exposure to lower consumer demographics could continue to hit its sales figures.
Citigroup has upgraded the bank from “sell/speculative” to “hold/high risk” and has lowered its target price from €4.49 to €3.50 following a recent share sale. The broker thinks the capital increase is a major step forward for Commerzbank’s move towards a new long-term business model, and believes that any outstanding risks are manageable.