Tesco 'buy' rating retained at DB despite Q3 disappointment
Tesco Plc's (LSE:TSCO) new full-year guidance was the "important takeaway" from the grocer's third-quarter like-for-like sales, that's according to Deutsche Bank. The German bank, which retains a 'buy' recommendation, noted that the quarter's sales were below its expectations, reported at 3.1% versus analysts' anticipating 3.9%.
Tesco PLC (TSCDY) Q3 2026 Earnings Call Transcript
Tesco PLC (TSCDY) Q3 2026 Earnings Call Transcript
Tesco shares slip despite solid trading as high expectations take their toll
Shares in Tesco PLC (LSE:TSCO) fell 5% to 430.42p on Thursday, as another robust trading update ran into a familiar problem for the UK's biggest supermarket: expectations that have risen almost as fast as its market share. The figures were largely positive, but investors focused on what was, by Tesco's own lofty standards, a relatively modest period of growth and a weaker contribution from Booker, its wholesale arm.
Tesco Says It Expects to Hit Higher End of Profit Target
The supermarket chain said like-for-like group sales excluding fuel increased 2.9% on year for the 19 weeks ending Jan. 3.
Tesco profit to hit upper end of forecast range after strong Christmas trading
Tesco PLC (LSE:TSCO) said it now expects to deliver profits at the upper end of City expectations after a strong third quarter and Christmas period, helped by market share gains, robust fresh food sales and rapid growth online. Britain's biggest supermarket group said on Thursday that it expects full-year adjusted operating profit for 2025/26 to come in at the top end of its previously stated £2.9 billion to £3.1 billion range.
Tesco and Sainsbury's set to underline market share gains as Christmas trading looms
UK supermarket trading updates due this week are expected to confirm a solid Christmas period for the sector, with Tesco PLC (LSE:TSCO) and J Sainsbury PLC (LSE:SBRY) once again emerging as the clear winners, according to analysts at Citi and Deutsche Bank. Tesco reports on Thursday, covering its third quarter and the key six-week Christmas period.
Tesco share price has retreated: Is it a bargain or a value trap?
Tesco share price has remained in a narrow range in the past few months despite the company's growing market share and profitability growth. It was trading at 442.2 on Monday, inside a narrow range it has remained at since December.
Tesco and Next downgraded on dimmer UK consumer outlook
Tesco PLC (LSE:TSCO), Next PLC (LSE:NXT) and Primark owner Associated British Foods PLC (LSE:ABF) have been downgraded by investment bank Jefferies, citing a growing disconnect between like-for-like (LFL) retail sales and the UK's weakening disposable income outlook. Jefferies' research on consumer cashflows projects disposable income growth slowing to 1.9% in the 2026-27 fiscal year, down from 2.6% in 2025-26, with weaker wage growth and rising unemployment weighing on households.
Leading bank turns cautious on Europe's retailers but backs Inditex and Tesco for 2026
Citi has taken a selective stance on Europe's retail and brands sector for 2026, arguing that a sluggish economic backdrop means investors should favour companies with clear structural advantages. Its top picks are Inditex (buy) and Tesco PLC (LSE:TSCO) (buy), while Associated British Foods PLC (LSE:ABF) is rated 'sell'.
Tesco and Sainsbury benefit from slowdown in Aldi and Lidl space race
Tesco PLC (LSE:TSCO) and J Sainsbury PLC (LSE:SBRY) are currently enjoying a "supportive environment" from a pace of new discounter store development well below historical averages, according to a new research note from UBS. Using geospatial data from the UBS 'Evidence Lab' unit, UBS retail analysts observed that industry-wide space growth is running at around 1.0%, significantly below the pre-Covid average of 2.6%.
Tesco drops and Sainsbury's gains as retail sales hit by pre-Budget jitters
Tesco PLC (LSE:TSCO) shares fell after grocery market data showed its rate of sales growth slowing in recent weeks, while J Sainsbury PLC (LSE:SBRY) popped higher as growth held steady, though wider spending was curtailed due to pre-Budget jitters. Grocery price inflation held steady at 4.7% last month, according to the Worldpanel supermarket till report from Numerator, formerly Kantar, with supermarket sales rose 3.4% over the four-week period, below the rate of inflation.
Tesco and Next are most favoured stocks in retail sector for big investors
Investor positioning in the European retail sector has shifted subtly but meaningfully over the past month, according to a new UBS analysis, with Tesco PLC (LSE:TSCO) and Next PLC (LSE:NXT) particular favourites. The bank's crowding framework – which emphasises changes in positioning over one- and three-month periods – shows investors leaning more toward buying rather than betting against the stocks, with food retailers seeing the most pronounced improvement in support.
