Tesco initiated with a Buy at Goldman Sachs

Goldman Sachs initiated coverage of Tesco with a Buy rating and 350 GBp price target as part of the firm’s broader research note on Supermarkets in Europe. Food sales are directionally linked with inflation which, after a period of very high inflation, is currently normalizing, the analyst tells investors in a research note. The firm adds that for Tesco, it’s Buy rating reflects the company’s successful focus on value for customers, market share progress, and leading free cash flow margins relative to the company’s peers.