Broker's note: Tesco
Bernstein Research has re-iterated its Outperform recommendation on Tesco following the release of the latest industry sales figures from TNS.The broker says the 5.7% growth in sales for Tesco over the four weeks to May 17 represents the first time the company has outperformed the market since the introduction of its Discounter range in September.
Bernstein believes this performance further justifies Tesco as it top pick among the UK grocers especially since it continues to trade at a discount to its peers despite its strong international and services businesses.
The broker retains its price target of 450p for Tesco, which compares with an underlying share price of 368p following the fall of 2% in early trading today (May 28).
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