Tesco Share Price Forecast

last updated on

Tesco Share Price Forecast

Tesco Share Price Forecast For Next 12 Months

Tesco shares have gained more than 14% over the last 12 months. This upside in the stock price came at a time when the UK grocery market is under pressure from discounters like Aldi and Lidl.

Also, the UK economy is going through a cost-of-living crisis. This clearly highlights that Tesco is doing something right, and it is also rewarded for it!

Tesco Share Price Can Hit 520p

Tesco has built a strong relationship with the shoppers. The firm has also clearly communicated its value-for-money message through its Clubcard scheme.

So, what's ahead for the Tesco share price over the next 12 months? As of now, 12 out of 16 analysts have issued a Buy or Outperform rating for the Tesco stock.

The average price target for the Tesco share is 520p over the next 12 months. Morgan Stanley is more optimistic and has set a price target of 550p. Meanwhile, Jeferries has set a target of 460p.

So if these projections turn out to be true, then an investment of 5,000 into the Tesco stock could be worth 4,883-5,838 over 12 months.

Even the latest results from Tesco show it is doing really well. This also supports higher share prices in the coming quarters.

For starters, the like-for-like sales from the UK jumped by 1.8% in Q1. The customer satisfaction score has also improved over the months. This shows that customers are happy with Tesco amidst the rising competition.

Online sales of Tesco also went up by 8.9%, while the Whoosh delivery service has grown by 30%. With all things considered, it is clear that things are looking really well for the Tesco stock.

Tesco stock is definitely a buy if you can hold it over a 12-month period. Of course, there are risks related to inflation and the cost-of-living crisis. However, Tesco has proved it can easily navigate tough times and still emerge as a winner.

Trending Stories