The City has hailed the effects of Tesco’s double points Clubcard push and said the UK’s largest retailer has regained the initiative from its domestic retail rivals.

Shares in the Tesco rose by 3% yesterday after analysts upgraded their guidance on the supermarket for investors.

“A year ago, amid general mayhem, Tesco was seemingly fighting fires on all fronts,” said a note from Shore Capital. “It is emerging well from a year of major challenges.”

JP Morgan Cazenove pointed to the impact of its double points Clubcard push to help restore momentum and tipped international sales for significant growth.

Meanwhile, Irn-Bru maker AG Barr was also recommended to investors after Altium Securities said the soft drink group’s underperformance could make it a takeover target.

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