Although Tesco’s shares have risen steadily, they have underperformed the FTSE All Share index by 3% over the past year and represent a great buying opportunity, according to broker Seymour Pierce.
Over the past month they underperformed the index by 4% - and this from a company expected to increase profits by more than 13%, said the analyst.
After slipping to a year low of 158p in March, the price has climbed to 221.5p. Tesco’s interim sales will be announced on September 16, and would show a strong performance, said Seymour Pierce.
As The Grocer went to press, Northern Foods chief executive Jo Stewart resigned after a profits warning. The share price fell by 24p (15%) to 136p.