Shares in Tesco (LON:TSCO) have advanced in today’s session, outperforming the broader market, after the latest industry data showed that Britain’s biggest supermarket had grown grocery sales for the 12 weeks to December 3. The company was further the fastest-growing of the UK’s ‘Big Four’ supermarkets.
As of 10:22 GMT, Tesco’s share price had added 0.68 percent to 206.90p, outperforming the benchmark FTSE 100 index which currently stands 0.26 percent higher at 7,473.16 points. The group’s shares have lost more than two percent of their value over the past year, as compared with a more than seven-percent rise in the Footsie.
Latest Kantar data
Kantar Worldpanel announced today that overall UK supermarket sales had increased in value by 3.1 percent in the 12 weeks to December 3.
“Despite higher prices the British public is well into the swing of festive shopping,” Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, commented in a statement.
At Tesco, sales rose 2.5 percent compared to the prior-year period, making the company the fastest-growing of the ‘Big Four’ grocers. Kantar further noted that despite Tesco’s market share falling by 0.1 percentage points to 28.2 percent, the group had remained Britain’s most-visited retailer, having welcomed 21 million households during the latest quarter.
Analysts on Tesco
The 16 analysts offering 12-month price targets for Tesco for the Financial Times have a median target of 200.00p on the shares, with a high estimate of 270.00p and a low estimate of 165.00p. As of December 9, the consensus forecast amongst 22 polled investment analysts covering the blue-chip supermarket advises investors to hold their position in the company.
Goldman Sachs recently turned bullish on Britain’s biggest grocer, expecting that the company will continue to take market share from its competitors while supporting comparable sales growth.
Tesco is scheduled to update investors on its third-quarter and Christmas performance on January 11.