Tesco share price: what’s the outlook for 2020?

The British supermarket chain reported modest Christmas sales growth due to a ‘subdued’ UK retail market, but analysts from Jefferies remain upbeat about the stock’s performance in 2020.

Tesco reported a slight increase in underlying UK Christmas sales, up just 0.1%, blaming smaller than expected rise on a ‘subdued’ market.

‘In a subdued UK market we performed well, delivering our fifth consecutive Christmas of growth,’ Tesco CEO Dave Lewis said.

‘Whilst the UK environment has clearly been challenging, the combination of our attractive customer offer and strong operational delivery enabled us to outperform the market once again, following on from our strong performance last year.’

‘Over the Christmas period we outperformed the market in both volume and value terms with a strong performance in fresh food,’ he added.

Looking to trade Tesco and other retail stocks? Open a live or demo account with IG.

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 249p a share as of 11:10 GMT on Monday analysts at the US-based investment bank believe that the stock has a potential upside of 24.4%.

You can go long or short Tesco with IG using derivatives like CFDs and spread bets.

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’.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.