Tesco Share Discussion Threads

[stealbulls] 16/3/2018 08:29

Being clobbered today from a 282m sell being made! - hold onto your hats likely a windy day! - source, Bloomberg this morning.

[retsius] 15/3/2018 20:25

Stealbulls
Many thanks for info.

[anony mous] 15/3/2018 18:20

Thanks graham

[harvester] 15/3/2018 18:01

my understanding is that the current divi 1pence but a further divi may be announced with the next results.Correct???

[stealbulls] 15/3/2018 17:34

Retsius, BBB- is the lowest investment grade, - BB+ (current rating) or BB- are both classed as 'junk'. BBB- is one higher than BB+.

Implications - 'ii', are offered a level of leverage (borrowing) to their investments, any 'junk' products are normally offered at 0-10%, investment grade 'loan to value' can normally be as high as 70%, sometimes higher. Investment grade products can also be used as security (banking, insurance products, bond products).

Sorry if that doesn't make much sense - But Tesco's with an investment grade, stable outlook, revisiting dividend payouts with the prospects of capital increase (Broker target price)does all add up as a good filler to high wealth portfolios in my opinion.

Of course I maybe completely wrong and no advice is intended - please seek thorough advice if thinking of borrowing against anything!.

[retsius] 15/3/2018 16:58

Stealbulls
Should that not be BB- to BB+ ?!
R.

[grahamburn] 15/3/2018 14:56

Anonymous 21598.

Without checking, my recollection is that a figure of 2p per share for the next dividend payment has been mentioned.

[wynmck] 15/3/2018 13:39

thanks both.....hope for a couple more positive notes pre the results on the 11th

[russell crowe] 15/3/2018 13:35

"Tesco is a visible turnaround story and the retailer will increasingly be viewed as a capital return stock, JP Morgan analysts said as they rated the shares ‘overweight217;.

The supermarket chain’s recent acquisition of Booker is transformational because it gives Tesco a bigger market to aim at, more than £6bn of revenue capacity and a better mix of formats as shoppers opt for online and convenience, the analysts said. In addition to £200m of synergies, Tesco has secured the execution abilities of Charles Wilson, Booker’s former boss who has taken over as head of Tesco’s UK business.

The Booker deal, which is not reflected in consensus estimates, will allow Tesco to generate £4.4bn of free cash flow and reduce its net debt by £2.2bn by 2020, JP Morgan said. A quarter, or £1.1bn, of the free cash flow will be returned to shareholders in dividends, they predicted.

For this reason, investors will shift their attention to Tesco’s cash generation and ability to return capital and away from its trading potential, the analysts said. They gave Tesco a 265p price target compared with 210p at the time of publication.

“We turn buyers of Tesco shares for the first time in five years as its cash flow, top line and balance sheet have improved, whilst Booker adds new addressable market potential and strong execution capabilities with Charles Wilson now at the helm,” the analysts, led by Borja Olcese, said in a note to investors.

Better-than-expected execution is an opportunity, given the strength of the management team, while weaker revenue trends are the biggest risk, they said. A stronger Tesco is not good news for Sainsbury’s given their geographic and customer overlap, the analysts added.

Before Tesco's bid for Booker, JPM had an 'underweight' rating and a 135p price target on the stock."

[philanderer] 15/3/2018 13:22

Tesco is a 'visible turnaround', JP Morgan analysts say


Tesco is a visible turnaround story and the retailer will increasingly be viewed as a capital return stock, JP Morgan analysts said as they rated the shares ‘overweight’.

The supermarket chain’s recent acquisition of Booker is transformational because it gives Tesco a bigger market to aim at, more than £6bn of revenue capacity and a better mix of formats as shoppers opt for online and convenience, the analysts said. In addition to £200m of synergies, Tesco has secured the execution abilities of Charles Wilson, Booker’s former boss who has taken over as head of Tesco’s UK business.

The Booker deal, which is not reflected in consensus estimates, will allow Tesco to generate £4.4bn of free cash flow and reduce its net debt by £2.2bn by 2020, JP Morgan said. A quarter, or £1.1bn, of the free cash flow will be returned to shareholders in dividends, they predicted.

For this reason, investors will shift their attention to Tesco’s cash generation and ability to return capital and away from its trading potential, the analysts said. They gave Tesco a 265p price target compared with 210p at the time of publication.

“We turn buyers of Tesco shares for the first time in five years as its cash flow, top line and balance sheet have improved, whilst Booker adds new addressable market potential and strong execution capabilities with Charles Wilson now at the helm,” the analysts, led by Borja Olcese, said in a note to investors.

Better-than-expected execution is an opportunity, given the strength of the management team, while weaker revenue trends are the biggest risk, they said. A stronger Tesco is not good news for Sainsbury’s given their geographic and customer overlap, the analysts added.

Before Tesco's bid for Booker, JPM had an 'underweight' rating and a 135p price target on the stock.

[stealbulls] 15/3/2018 13:09

JPM-C, price target 265p.
JPM-C had no previous rating for Tesco, as it was Booker's corporate broker.
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I think Tesco's are possibly looking in line to get their investment grade back from bb+ to bbb- (1 notch up!) -this would be the real big fish Dave Lewis would like to catch!! Please do your own research, no advice intended. GLA. Steal.

[wynmck] 15/3/2018 12:10

Shares mag Market Report today
Tesco is the top FTSE 100 riser with a share price increase of 2.5% to 215.6 following analysts upgrades"
anyone see those upgrades yet?

[anony mous] 15/3/2018 11:28

About to blowHold tight

[anony mous] 15/3/2018 11:10

JP Morgan upgrades Tesco today.Looking at 2.50+ easy short term imo.

[chinese investor] 15/3/2018 10:06

SOLD half of my Holding !

[supermarky] 15/3/2018 09:24

Don't get too excited we haven't cleared 220. Fake out comes to mind.

[ny boy] 15/3/2018 09:17

On big volume too, nearly 10M shares traded by 9.17am

[ny boy] 15/3/2018 09:14

Finally, the long awaited breakout!

[supermarky] 15/3/2018 09:02

Needs to clear 220 to start getting excited about further gains.

[chinese investor] 15/3/2018 08:36

I've started to top slice !

[chinese investor] 15/3/2018 08:06

6p to 220p !

[philanderer] 13/3/2018 13:14

'Tesco reports surging sales of posher wine'

The supermarket said volume sales of its Finest range were up on the back of shoppers “becoming more confident”

[philanderer] 11/3/2018 00:03

Mail on Sunday:

MIDAS UPDATE: Keep Tesco in your basket after £3.7bn tie-up with Booker

Read more: