Deutsche Numis Keeps Tesco at Buy Post FY26 Guidance Upgrade

07:03 AM EST, 01/08/2026 (MT Newswires) -- Deutsche Numis Research affirmed its investment case for Tesco (TSCO.L) after the retail giant upgraded its fiscal 2026 guidance, despite slightly missing third-quarter sales against "a relatively high bar." With Tesco expecting adjusted operating profit at the upper end of its guidance range of 2.9 billion pounds sterling to 3.1 billion pounds, the stock's buy rating and price target of 5.00 pounds were confirmed on Thursday. "It is worth noting the 70 [basis-point] sequential slowdown in UK [like-for-like] into Christmas is against a 30bps tougher [comparable] and Tesco have outperformed the market on both a value and volume basis (value share +30bps to 29.5% in Dec)," analysts said. "Operationally, Tesco have improved customer satisfaction and their relative price position in the market." Fiscal third-quarter group LFL of 3.1% underperformed the research firm's estimate of 3.9% and consensus of 3.6%, while UK LFL of 3.9% missed Deutsche's forecast of 4.5% and the consensus of 4.1%. Over Christmas trading, group LFL and UK LFL came in at 2.4% and 3.2%, respectively, below the consensus of 3.4% and 3.9%.