Tesco share price: Jefferies remains bullish on grocer

Jefferies remains bullish on Tesco (LON:TSCO), arguing that a capital markets day at the grocer has revealed future ‘sales enablers’ and cost savings opportunities, Citywire reports. The comments came after Britain’s biggest supermarket updated investors on its strategy this week, signalling opportunities to improve margin, and further hinting that it is a trial of an upmarket convenience store.

Tesco’s share price fell marginally in the previous session, giving up 0.21 percent to close at 235.00p. The stock marginally outperformed the broader UK market, with the benchmark FTSE 100 index shedding 39.50 points to end trading 0.53 percent lower at 7,403.54. This morning, the grocer’s shares have inched 0.09 percent lower to 234.80p as of 08:07 BST, as compared with about a 0.4-percent rise in the Footsie.

Jefferies bullish on Tesco

Jefferies reiterated its ‘buy’ recommendation  on Tesco yesterday, and target price of 275p on the shares.

“Tesco’s capital markets day showcased interesting future sales enablers and sizeable cost savings opportunities,” the broker’s analyst James Grzinic commented, as quoted by Citywire, adding that the grocer’s Capital Markets Day had “showcased interesting future sales enablers and sizeable cost savings opportunities”.

“The fleshing out of the building blocks to the free cashflow rebuild reassured us. So did spending time with the impressive, and fully engaged, senior team,” Grzinic continued, adding that this “should help underpin more progress in the valuation context”.

Other analysts on grocer

JPMorgan Chase reaffirmed its ‘overweight’ rating on Britain’s biggest grocer this week with a price target on the Tesco share price of 280p. According to MarketBeat, the blue-chip supermarket currently has a consensus ‘buy’ rating and an average valuation of 278.80p. The 14 analysts offering 12-month price targets for Tesco for the Financial Times have a median target of 278.00p on the shares, with a high estimate of 315.00p and a low estimate of 220.00p.