{"id":77524,"date":"2026-06-04T11:43:12","date_gmt":"2026-06-04T11:43:12","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/77524\/"},"modified":"2026-06-04T11:43:12","modified_gmt":"2026-06-04T11:43:12","slug":"tesco-sales-forecasts-trimmed-but-ubs-says-lack-of-price-war-bodes-well-for-profits","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/77524\/","title":{"rendered":"Tesco sales forecasts trimmed but UBS says lack of price war bodes well for profits"},"content":{"rendered":"<p>    <img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/www.europesays.com\/ch\/wp-content\/uploads\/2026\/06\/719f6c383e0a44a7b134312bb9014a1f.jpeg\" alt=\"Tesco sales forecasts trimmed but UBS says lack of price war bodes well for profits\" loading=\"eager\" height=\"641\" width=\"960\" class=\"yf-lglytj  loaded\"\/> Tesco sales forecasts trimmed but UBS says lack of price war bodes well for profits Proactive uses images sourced from Shutterstock      <\/p>\n<p class=\"yf-1fy9kyt\"><a href=\"https:\/\/finance.yahoo.com\/quote\/TSCO.l\" data-ylk=\"slk:Tesco PLC (LSE:TSCO);elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;Tesco PLC (LSE&quot;}\" class=\"link \" rel=\"nofollow noopener\" target=\"_blank\">Tesco PLC (LSE:TSCO)<\/a>\u00a0is expected to reassure investors on profit growth when it delivers its first-quarter trading update later this month, despite signs that sales growth has moderated after a strong comparative period, according to UBS.<\/p>\n<p class=\"yf-1fy9kyt\">The Swiss bank said rivals including Asda and Morrisons appear increasingly focused on profitability, reducing the likelihood of a damaging price war in the UK grocery market.<\/p>\n<p class=\"yf-1fy9kyt\">Analysts also pointed to signs of a broader strategic shift, noting Tesco has linked executive incentives to market share for the first time, which UBS sees as evidence of greater long-term ambitions.<\/p>\n<p class=\"yf-1fy9kyt\">UBS reiterated its &#8216;buy&#8217; recommendation and 545p price target, arguing that Tesco&#8217;s longer-term growth prospects and market share gains remain intact.<\/p>\n<p class=\"yf-1fy9kyt\">Analysts nevertheless trimmed their forecasts for UK like-for-like sales growth in the quarter to 2% from 3%, reflecting weaker industry data and less favourable weather than a year earlier, when Tesco delivered 5.1% growth. The revised estimate is <a href=\"https:\/\/www.proactiveinvestors.co.uk\/companies\/news\/1093044\/tesco-faces-slower-first-quarter-sales-growth-says-citi-1093044.html\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:in line with other City forecasts;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;in line with other City forecasts&quot;}\" class=\"link \">in line with other City forecasts<\/a>.<\/p>\n<p class=\"yf-1fy9kyt\">More positively, improving trading conditions towards the end of May are expected to support quarterly performance.<\/p>\n<p class=\"yf-1fy9kyt\">Analysts said they &#8220;fully expect&#8221; Tesco to maintain its profit guidance for the 2027 financial year and see\u00a0the medium-term outlook supported by &#8220;continued reliable FCF growth, shareholder-friendly capital allocation and optionality from AI efficiencies, personalised pricing, Retail Media and Marketplace&#8221;.<\/p>\n<p class=\"yf-1fy9kyt\">The shares have fallen around 11% since the group&#8217;s annual results, a decline UBS believes has created an attractive entry point for investors.<\/p>\n","protected":false},"excerpt":{"rendered":"Tesco sales forecasts trimmed but UBS says lack of price war bodes well for profits Proactive uses images&hellip;\n","protected":false},"author":2,"featured_media":77525,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[129],"tags":[40364,9219,1080,30502,2048,4360,223],"class_list":["post-77524","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ubs","tag-city-forecasts","tag-market-share","tag-price-target","tag-sales-forecasts","tag-sales-growth","tag-tesco","tag-ubs"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116691665254572937","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/77524","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=77524"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/77524\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/77525"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=77524"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=77524"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=77524"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}