Shares in Tesco PLC (LON:TSCO) are being eyed closely as Barclays increased its price target to 475p from a previous 415p, reaffirming an ‘Overweight' rating in a note this week.
The revision reflects Barclays' positive assessment of Tesco's recent financial performance and strategic direction, although operational challenges and market volatility remain factors for consideration.
The revised price target from Barclays follows an earlier adjustment in October 2024, when the target was raised from 375p to 405p.
That initial increase was spurred by Tesco’s first-half performance in the 2024-25 fiscal year, where retail EBIT and retail free cash flow surpassed consensus estimates. The robust figures prompted management to elevate its annual target for retail EBIT, signaling internal confidence in sustained performance.
On Tuesday, following the target increase, Tesco shares rose over 1%, closing at 432p per share. However, the stock has declined 0.9% so far on Wednesday, now at 428.1p.
The increase in the price target to 475p by Barclays highlights an optimistic view of Tesco's financial position and strategic initiatives. For the year-to-date, Tesco shares are up 16.2%, while in the last 12 months, the stock has rallied 23%.
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