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Morgan Stanley Initiates Tesco with Overweight Rating

Morgan Stanley starts Tesco with overweight rating and GBP5.60 price target, citing strong momentum.

David Wilson
ByDavid Wilson- Senior Editor
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Bond.az - Morgan Stanley initiated coverage on Tesco Plc. (LON:TSCO) with an overweight rating and a price target of GBP5.60.

Analyst Izabel Dobreva noted Tesco's strong operating momentum, driven by market share gains, premiumisation, online growth, and retail media. The stock has returned 25% over the past year.

The firm expects UK retail like-for-like sales growth above 3.5% annually through FY27-FY28e. Morgan Stanley believes consensus underestimates Tesco's durable competitive advantage.

Morgan Stanley named Tesco a top pick, with the 12-month price target implying 20% upside.

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Morgan Stanley Initiates Tesco with Overweight Rating | Bond.az