Tesco should produce decent numbers when it reports on Wednesday, according to the analysts at Swiss Bank UBS.
Highlighting three areas, UBS is a buyer and expects to see resilient demand as industry volumes recover, sustainable market share gains and a better earnings growth than expected.
Driving this will be volume, retail media, cost savings and energy tailwinds.
“While we continue to assume an underlying buyback of £750m a year, we see a potential for TSCO to return £1.25bn/yr over the next two years given the intention to return a majority of the c£1bn from the bank or 22% of market cap including dividends.”
Shares were 0.7% lower are at 287p.