Shares in the supermarket chain Tesco PLC (LSE:TSCO) were 1.5% higher after an upbeat note from Barclays Capital that provided some support for the stock in the wake of last week’s interims.
The first-half figures were accompanied by a warning that its operating profit would be towards the lower end of guidance for 2022.
This was counterbalanced (to an extent) by an upgrade to its forecast for free cash flow.
Against a backdrop of rocketing inflation and the cost-of-living squeeze, Barclays reckoned the food retailer’s performance had been resilient.
“Tesco's 1H [first half] results were not rewarded in terms of the short-term share price reaction, but we think that if the company can continue to broadly hold its market share steady and generate cash within its target range then the shares will be re-rated over time,” the investment banking arm of the high street lender said.
It repeated its ‘overweight’ recommendation and 325p a share price target.
Mid-morning the shares were up 3p at 203.7p.