- Tesco
- 06 January 2025 10:31:40
Source: Sharecast
UK discretionary retail expenditure in 2025 is expected to see a modest real-term decline of 0.4%, with price pressures picking up for the grocery sector, as a result of companies passing through higher costs to customers in the aftermath of the autumn budget last October, the investment bank said on Monday.
"We highlight Tesco and B&M as our top 'buy'-rated picks," Citi said in a research note.
"We expect Tesco to continue to take share in an inflationary grocery market, driven by strong pricing credentials, the success of its Finest range, investment in stores and an ability to under-inflate vs. the market. We expect B&M to benefit from its compelling price offer in the context of customers increasingly shopping around as grocery inflation accelerates."
Citi kept its target price for Tesco (last updated at 425p) unchanged, but raised its target for B&M from 510p to 520p.
Tesco's shares were down 0.2% at 371.6p by 1025 GMT, while B&M jumped 2.6% to 369.1p.