HSBC today ungraded Tesco (TSCO.L) from UNDERWEIGHT to NEUTRAL with a new target price of 195p (up from 175p). Saying that recent bad news now appears to be priced in and that it sees Tescos has an “improving risk profile”.
HSBC analysts highlight decisive action by new Chief Executive and recent board appointments. Also saying the share price now is 52% less than one year ago yet, although profits are falling at the grocer this now appears to be a good value buying price.
HSBC Analyst David McCarthy is quoted as saying “We expect further bad news on accounting, pensions and a re-basing of profits, but believe much of this is now in the price. Focus is shifting to the positive with balance sheet concerns to be addressed (through a rights issue and/or asset disposals) and more senior appointments, executive and non-executive, and probably including a new chairman.”
Tesco is trading slightly higher at 184p this afternoon.
HSBC today ungraded Tesco (TSCO.L) from UNDERWEIGHT to NEUTRAL with a new target price of 195p (up from 175p). Saying that recent bad news now appears to be priced in and that it sees Tescos has an “improving risk profile”.
HSBC analysts highlight decisive action by new Chief Executive and recent board appointments. Also saying the share price now is 52% less than one year ago yet, although profits are falling at the grocer this now appears to be a good value buying price.
HSBC Analyst David McCarthy is quoted as saying “We expect further bad news on accounting, pensions and a re-basing of profits, but believe much of this is now in the price. Focus is shifting to the positive with balance sheet concerns to be addressed (through a rights issue and/or asset disposals) and more senior appointments, executive and non-executive, and probably including a new chairman.”
Tesco is trading slightly higher at 184p this afternoon.
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