Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a726079

The Expert View: Tesco, Schroders and Next

by Chris Marshall on Jan 06, 2014 at 05:01

‘Buy’ into a Tesco turn-around

Shareholders can expect more bad news from Tesco (TSCO.L) when it provides an update on Christmas trading this Thursday – but after a rough year things could be looking up for the supermarket giant.

Retail analysts at Jefferies are among a slim majority of City scribblers who say ‘buy’ the shares after four consecutive years of declines.

Tesco, fighting to turn around its fortunes after a profit warning in January 2012, has been losing shoppers. It has invested £1 billion to turn around its UK business.

Though it will have had a ‘challenged’ Christmas, with group sales falling 1.5%, ‘we believe relative trading performance is improving in the UK and international LFL challenges are now past their worst,’ say the Jefferies team.

The market is still assuming the worst: ‘At current valuation levels investors price in the tough UK conditions but assume limited chances of a turn-around domestically or internationally,’ the analysts note.

Tesco shares rose 0.1% to 330p on Friday.

Sign in / register to view full article on one page

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Investing for income in a changing environment


With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

More about this:

Look up the funds

  • Schroder UK Alpha Plus A Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Cazenove UK Opportunities B Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the shares

  • Tesco PLC (TSCO.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Arrow Global Group PLC (ARWA.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Rio Tinto PLC (RIO.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Next PLC (NXT.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Schroders PLC (SDRt.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Hargreaves Lansdown PLC (HRGV.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Aberdeen Asset Management PLC (ADN.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the fund managers

  • Richard Buxton
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Julie Dean
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet