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'.
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