Tesco "buy"

01/02/07 - Panmure Gordon & Co

LONDON, January 2 (newratings.com) - Analyst Philip Dorgan of Panmure Gordon & Co maintains his "buy" rating on Tesco Plc (TSCO-GBX). The target price is set to 450p.

In a research note published this morning, the analyst mentions that there is greater visibility into the company’s profit growth than into that of its peers. Tesco’s profit growth is expected to be resilient to any decline in consumer spending during 2007, the analyst says. The company’s foray into the US market is likely to create significant shareholder value, Panmure Gordon & Co adds. Tesco’s turnover is expected to exceed £110 billion over the forthcoming ten years, according to the analyst.