MARKET TALK: Tesco 1Q Likely Marks Low Point Of The Year

15th Jun 2010 09:46

0846 GMT [Dow Jones] Tesco's (TSCO.LN) 1Q trading update is in line with expectations, and the UK performance likely marks the low point of the year, says Bernstein. "We expect that recent increases in food commodity costs should drive an acceleration in food inflation throughout the remainder of '10, and as such expect 1Q represents the low-point of grocers' sales performance in the year." Also expects international performance to accelerate through the year. Adds Tesco trades broadly in line with its UK peers despite having superior long-term growth prospects. Rates the stock at outperform, with 500p price target. Shares +0.8% at 395p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 15, 2010 04:46 ET (08:46 GMT)