Tesco share price: ShoreCap upbeat on grocer after dividend update

Analysts remain bullish on Britain’s biggest supermarket

Tesco share price: ShoreCap upbeat on grocer after dividend update

Shore Capital remains upbeat on Tesco (LON:TSCO), welcoming the grocer’s announcement that it will pay a 2p final dividend for its 2018 financial year, Citywire reports. Britain’s biggest grocer unveiled the payout yesterday as it told investors that it was on track to meet its full-year profit expectations and appointed Booker Group’s (LON:BOK) chief executive as head of its operations in the UK and Ireland.

Tesco’s share price has fallen marginally into the red in London this morning, having given up 0.40 percent to 197.95p as of 09:37 GMT. The stock is underperforming the broader market selloff which has seen the benchmark FTSE 100 index tumble 1.56 percent to 7,220.62 points so far today.

ShoreCap hails dividend

Shore Capital repeated its ‘buy’ rating on Tesco yesterday, welcoming the group’s announcement that it will pay a 2p final dividend for its 2018 financial year, building on November’s 1p payout. Britain’s biggest grocer restored its dividend last year after its payout to shareholders was suspended in 2014 due to the accounting scandal.

“Such a declaration is a modest but welcome return to the income paying roster for a group that, until it hit the buffers, had an enviable dividend growth track record,” the broker’s analyst Clive Back commented, as quoted by Citywire, adding that the group’s pending takeover of wholesaler Booker was likely to prove positive for payouts.

Other analysts on Tesco

The 14 analysts offering 12-month price targets for Tesco for the Financial Times have a median target of 219.50p, with a high estimate of 270.00p and a low estimate of 170.00p. As of February 3, the consensus forecast amongst 20 polled investment analysts covering the blue-chip supermarket advises investors to hold their position in the company.

As of 09:50 GMT, Tuesday, 06 February, Tesco PLC share price is 197.45p.

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