London, May 19, 2026, 16:09 BST
- Tesco shares rose 0.7% to 464.9p at 15:46 BST. The FTSE 100 barely moved late in the day. Sharecast
- Morgan Stanley began coverage of Tesco with an “overweight” call and set a 560p target. The bank pointed to Tesco’s growing market share and its digital potential. Investing
- The London Stock Exchange operated as usual, with trading hours from 8:00 a.m. to 4:30 p.m. local time. TradingHours
Tesco shares traded higher Tuesday, keeping most of Monday’s big jump. Morgan Stanley started coverage of the UK’s largest supermarket, putting a bullish rating on the stock and setting a 560p price target.
Tesco shares traded 0.7% higher at 464.9p as of 15:46 BST, Sharecast data showed. The gain comes after the stock jumped 2.83% to 462p on Monday, beating a firm FTSE 100. Sharecast
Tesco’s call is in focus as investors look at its cash flow with a wary UK consumer in mind. UK stocks were up earlier Tuesday on weaker jobs data that eased fears of a rate hike, but the FTSE 100 was back down 0.03% at 10,320.33 by 15:50 BST. Reuters
Tesco got a nod from Morgan Stanley analyst Izabel Dobreva, who said the grocer’s “operating momentum remains strong” in a note reported by Investing.com. Dobreva called Tesco a top pick and kept an “overweight” rating. That means the bank sees Tesco outpacing its benchmark or sector over the year ahead. Investing
Dobreva named share gains, premiumisation, online growth and retail media as what’s behind the “step-up in earnings power”. Morgan Stanley said its 12-month target suggests about 20% upside. Investing
Tesco laid out its numbers for investors. In April, it posted 52-week sales excluding VAT and fuel at 66.59 billion pounds, a rise of 4.3% at constant exchange rates. Adjusted operating profit came in at 3.15 billion pounds, up 0.6%. Adjusted operating profit is Tesco’s main measure, as it leaves out some one-offs. Investegate
Tesco CEO Ken Murphy said in the results, “doing whatever we can to help keep down the cost of the weekly shop” is a focus as conflict in the Middle East brings fresh uncertainty for shoppers. Murphy said customers are spending more at Tesco, pushing its market share to the highest point in over ten years. Investegate
Tesco said it will start another £750 million share buyback, running to April 2027, after wrapping up a £1.45 billion program it launched in April 2025. The company is also raising its full-year dividend to 14.5p per share. Investegate
Tesco is still seeing gains from competitive data, but it’s not all in one direction. Worldpanel by Numerator data for the 12 weeks to April 19 showed both Tesco and Sainsbury’s picked up more market share. Lidl stayed ahead as the fastest-growing bricks-and-mortar grocer. Asda kept giving up share, according to the data. Reuters
Tesco’s sales climbed 4.3% in the period, with the group’s market share at 28.1%, Sharecast reported, citing Worldpanel. Sainsbury’s saw sales up 4.5% and a market share of 15.5%. Lidl set a new record at 8.4% share after posting an 8.8% sales gain. Sharecast
Tesco’s trade isn’t a sure thing. The company widened its guidance, blaming the Middle East conflict for more uncertainty and warning that UK household and economic pressure could shift forecasts. Tesco now sees adjusted operating profit for 2026/27 in a 3.0 billion to 3.3 billion pound range. If fuel, food, or wage costs go up further, Tesco might need to swallow extra costs or push harder on pricing to keep share. Investegate
Right now, Tesco is showing up as one of the steadier UK consumer staples names: cash coming in, buybacks in the mix, top market share, and a recent analyst upgrade. What comes next is whether the shares keep up if customers stick to promotions and skip paying full price.
