Barclays expects strong H1 from Tesco, raises target price.
Barclays has raised its target price for shares of Tesco ahead of the retailer's first-half results next month.
Source: Sharecast
The bank upped its target price from 320p to 325p, saying it expects Tesco to report strong figures when it reports on 4 October.
"We expect strong results", Barclays said in a research report on Friday, predicting UK like-for-like growth to remain relatively stable at 8.8%, compared with the 9% growth reported in the first quarter. Retail earnings before interest (EBIT) are expected to be up 10.2%.
"We think Tesco may well raise full-year retail EBIT/free cash flow guidance (even with a cautious view of how 2H may evolve)," Barclays said.
Tesco said back in June it expected full-year EBIT to be broadly flat year-on-year and retail free cash flow to be between £1.4bn to £1.8bn.
Barclays has a 'neutral' stance on the wider consumer sector but has kept Tesco as 'overweight'.
Whether you're looking for a Share Dealing Account, Stocks and Shares ISA or a Self-Invested Personal Pension (SIPP), we've got an account to suit your needs..
Halifax is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.
