MARKET TALK: Tesco 1Q Soft But In-Line - S&P Equity Research

15th Jun 2010 12:08

1108 GMT [Dow Jones] Tesco's (TSCO.LN) 1Q trading update is soft, but in-line, says S&P Equity Research. It notes group sales growth of 8.2% year-on-year, in line with S&P Equity's forecast, driven by a solid international performance, including 37.8% growth in the US. S&P Equity says 1Q like-for-like sales growth of 0.1% ex-VAT was not a surprise for the market. Similarly, S&P expects soft numbers from rivals, such as Sainsbury (SBRY.LN), which is due to report Wednesday. S&P Equity remains confident in Tesco's business model and says the valuation is still compelling. Buy rating, 500p target. Shares +1.9% at 399p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 15, 2010 07:08 ET (11:08 GMT)