Tesco share price: what’s the latest ahead of its Q3 and Christmas trading update?
The supermarket chain will unveil its third quarter and Christmas trading update on Thursday, with a strong set of results capable of propelling its share price higher.
Tesco is set to unveil its third quarter (Q3) and Christmas trading update on Thursday, with a strong set of results capable of sending its share higher.
Investors are hoping that the Christmas period will help bolster Tesco’s Q3 performance after UK supermarkets saw sales growth slow in the 12 weeks to December 1.
The slump in sales was caused by uncertainty over the general election, a ‘lacklustre’ Black Friday and a wet autumn delaying consumers Christmas preparations, according to research carried out by Kantar.
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Jefferies upbeat about Tesco’s price trajectory
Analysts from Jefferies reiterated their ‘buy’ rating for the stock in December and issued a 310p price target.
Based on Tesco trading at 253p a share as of 14:40 GMT on Monday analysts at the US-based investment bank believe that the stock has a potential upside of 2.7%.
However, if Tesco can deliver a strong set of results on Thursday, the stock could break through 260p levels.
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Tesco slashes prices in January to drive new year sales
To help entice cash-strapped customers through its doors after the expensive Christmas period, Tesco has slashed prices on hundreds of products in January.
The move is part of its centenary celebrations, with the supermarket chain marking ‘100 Years of Great Value’.
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