Will shares in Tesco fall?

Tesco (TSCO)

Tesco PLC (-)

Will shares in Tesco fall towards the lows of 137p or rise back towards the highs of 201p?

Tesco is the most robustly valued of the trio, its shares trading at 12-month forward Price/Earnings (P/E) ratio of 24x, 34% higher than the average of the three blue-chips. This could be seen either as a sign of market confidence in continued growth at the company or a sign that Tesco shares are now fully, even over-valued compared to peers. The stock doesn’t currently pay a dividend, yet remains a popular short-term trading play.

There are currently 18 broker ratings out on Tesco, 13 of which have price targets above current levels and the last four of which have been either bullish (buy, outperform) or neutral (hold). As at 6 June, the average 12-month broker target price is seeking 22% upside for Tesco shares.

To be kept fully up to date with the latest news and technical observations on Tesco and the other UK listed retailers, access our full research offering here.

N.B. All pricing and consensus data was sourced from Bloomberg on 6 June. Please contact us for a full rundown.

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This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.

Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research

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