Tesco share price: what’s the outlook for 2020?
The British supermarket chain reported modest Christmas sales growth due to a ‘subdued’ UK retail market, but analysts from Jefferies remain upbeat about the stock’s performance in 2020.
Tesco reported a slight increase in underlying UK Christmas sales, up just 0.1%, blaming smaller than expected rise on a ‘subdued’ market.
‘In a subdued UK market we performed well, delivering our fifth consecutive Christmas of growth,’ Tesco chief executive officer (CEO) Dave Lewis said.
‘While the UK environment has clearly been challenging, the combination of our attractive customer offer and strong operational delivery enabled us to outperform the market once again, following on from our strong performance last year.’
‘Over the Christmas period we outperformed the market in both volume and value terms with a strong performance in fresh food,’ he added.
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Jefferies upbeat about Tesco’s price trajectory
Analysts from Jefferies reiterated their ‘buy’ rating for the stock in December and issued a 310p price target.
Based on Tesco trading at 249p a share as of 11:10 GMT on Monday analysts at the US-based investment bank believe that the stock has a potential upside of 24.4%.
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Tesco slashes prices in January to drive new year sales
To help entice cash-strapped customers through its doors after the expensive Christmas period, Tesco has slashed prices on hundreds of products in January.
The move is part of its centenary celebrations, with the supermarket chain marking ‘100 Years of Great Value’.
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