The first public outing by Tesco’s new boss Dave Lewis was given a thumbs down by the City on Friday as eight retail analysts cut forecasts and sent the grocer’s shares to a new 11-year low.
Shares fell 1.8 per cent to 167.9p after a turbulent 24 hours that has seen Tesco dump its chairman, scrap its profit guidance and watch profits plummet 92 per cent.
Deutsche Bank, JPMorgan, Jefferies, Oriel Securities, Santander, Exane, S&P Capital and BESI (formerly Espirito Santo) all downgraded their target share price for the supermarket, with several criticising Lewis and new chief finance officer Alan Stewart for being too short on details.
Analysts at JPMorgan explained: “Overall, we got a good impression of the new CEO and CFO, who listed a number of sensible basic principles and priorities such as the need to regain competitiveness and to strengthen the balance sheet. But we could not find anything positive in the results.”
BESI analysts added: “We think a rights issue looks necessary.”
It was not the start Lewis was hoping for as he jets off to visit Tesco’s Asian businesses for 10 days and starts looking at whether he should sell off either its South Korean or Thailand supermarkets.Reuse content