Gerry Murphy’s selection for the Tesco PLC (LSE:TSCO) chairman role is “an astute and good appointment” according to Shore Capital Group (LSE:SGR).
“We sense that Tesco’s shareholders will also welcome this appointment,” the investment group added.
Murphy has experience in the consumer industry, working as chief executive officer at Greencore and Kingfisher and as chair of Burberry and Tate & Lyle.
Shore Capital noted predecessor John Allen is leaving behind “a fine executive team” giving specific praise to chief executive officer Ken Murphy.
Tate & Lyle will lose a second high-ranking worker to Tesco in as many years after chief financial officer Imran Nawaz switched the food producer for the retailer.
Operations at Tesco stores appear to be strong, according to the UK capital market firm, arguing stores keep “high standards” and its finances have been strong in recent updates.
Shore Capital concluded: “Mr Murphy should, to us though, underscore the good ship Tesco’s stability, in which we wish him and his team good speed.”
The broker rates the stock a buy after it rose by 1% on Monday, opening trading at around 250p.