Deutsche Bank analyst Benjamin Yokyong‑Zoega says Tesco (LSE:TSCO), the UK's largest grocer, is relatively well placed for rising UK inflation.
The analyst, who in a new note repeats a Buy rating, points to support in the shape of Tesco's leading scale, defensive profile, sharpened value positioning, private-label range and incremental margin levers.
DB's Buy rating comes with a 525p price target, which implies around 15% upside to the prevailing Tesco share price of 454.10p.
The bank does, however, trim its UK like-for-like sales forecast to +2.2% from +3.0%, indicating a 90bp slowdown versus the most recent (fourth) quarter.
