Shares in Tesco (LON:TSCO) have been little changed in today’s session ahead of the blue-chip grocer’s first-quarter update due out tomorrow. The results will come with Britain’s biggest grocer also set to hold its annual general meeting on Friday, amid criticism over its executive pay.
As of 12:29 BST, Tesco’s share price had added 0.08 percent to 249.00p. The shares are marginally outperforming the broader UK market, with the benchmark FTSE 100 index having slipped into negative territory and currently trading 0.25 percent lower at 7,684.75 points. The group’s shares remain up by more than a third over the past year.
Tesco to post Q1 results
Tesco is scheduled to update investors on its first-quarter performance tomorrow and Proactive Investors reports that Deutsche Bank expects 1.6-percent growth in like-for-like UK sales, marking a slight slowdown from the 2.3-percent sales growth achieved in the final quarter of the grocer’s previous financial year.
Investors will also eye information on the integration of wholesaler Booker Group, which the blue-chip supermarket acquired earlier this year. Despite the acquisition, Tesco stands to lose its spot as Britain’s biggest grocer if the proposed merger between rivals Sainsbury’s (LON:SBRY) and Asda goes ahead.
The results will come after Kantar Worldpanel recently reported that Tesco had experienced a sales increase of 2.2 percent in the 12 weeks to May 20 and had attracted an extra 170,000 customers to its stores, despite dropping market share by 0.1 percentage points to 27.7 percent.
Analyst ratings update
Both Deutsche Bank and Shore Capital reaffirmed Britain’s biggest grocer as a ‘buy’ last week, without specifying a price target on the shares. According to MarketBeat, the company currently has a consensus ‘hold’ rating and an average price target of 235.93p.