FMP

FMP

Tesco PLC (OTC:TSCDY) Faces Mixed Analyst Ratings Amid Retail Sector Challenges

  • Jefferies downgraded Tesco PLC (OTC:TSCDY) from a "Buy" to a "Hold" rating, with a current stock price of $17.83.
  • Citi maintains a 'Buy' rating despite a cautious outlook on Europe's retail sector, highlighting Tesco's structural advantages.
  • Grocery inflation is expected to decrease, potentially affecting Tesco's revenue growth and pricing strategies.

Tesco PLC, trading under the symbol TSCDY on the OTC exchange, is a leading multinational grocery and general merchandise retailer. The company operates in several countries, providing a wide range of products and services. As of December 14, 2025, Jefferies downgraded TSCDY from a "Buy" to a "Hold" rating, with the stock priced at $17.83.

Citi's cautious outlook on Europe's retail sector for 2026 highlights the challenges Tesco may face. Despite this, Citi still rates Tesco as a 'buy', emphasizing its structural advantages. The bank anticipates a modest 1.1% growth in the UK's discretionary spending power, which could impact consumer spending patterns.

Grocery inflation is expected to decrease to 3% from 4.2%, which may benefit consumers but could limit revenue growth for supermarkets like Tesco. This change in inflation could affect Tesco's pricing strategies and profit margins. The stock's current price of $17.83 reflects a 1.22% decrease, trading between $17.68 and $17.88 today.

Tesco's market capitalization is approximately $39.69 billion, indicating its significant presence in the retail sector. The stock has seen a 52-week high of $19.06 and a low of $12.16, showing some volatility. Today's trading volume is 6,100 shares, suggesting moderate investor interest.

Potential challenges for Tesco include the rise of consumer-to-consumer fashion platforms and the UK's upcoming tariff regime. However, business rates reform and Brussels' plan to close the de-minimis loophole are seen as favorable developments, potentially offsetting some of these challenges.