Tesco shares fell on Friday after the supermarket’s price target was slashed by equity analysts at JP Morgan.
JP Morgan cut its price target to 230p from 240p sending Tesco shares to the bottom of the FTSE 100. Tesco shares were trading at 281p on Friday morning.
Tesco sales, excluding fuel, grew 8.9% on a constant currency basis in the first half of 2024FY, and adjusted operating profit rose 14%.
Pressure from the discounters is making the grocery market an increasingly competitive space, which risks a race to the bottom in terms of sacrificing margins to maintain market shares.
“Tesco was the top faller on the FTSE 100 after JPMorgan cut its target price to 230p from 240p. That knocked the supermarket’s share price by 1.8% to 280.6p and ended a rally in the stock which has been in motion since August. The company has gained market share this year but still faces intense competition,” said Russ Mould, investment director at AJ Bell.