Tesco, Ocado, and Sainsbury shares are all rising on Tuesday, with Tesco up 2.64%, Ocado up 2.28%, and Sainsbury’s 2.2% higher.
Journalist Dan Coatsworth speculated that the rally follows a read-across from reports about the energy rescue plan.
“If energy suppliers can subsidise bills via government-backed loans then there is an argument to say that the anticipated pullback in consumer spending might not be as bad as feared,” stated Coatsworth.
However, despite a rise in stocks, there have been several rating changes on Tuesday.
- Morgan Stanely Initiated Ocado with an “underweight” rating. It also provided a price target of 610p.
- Jefferies cuts Tesco to “hold” from “buy.” Furthermore, Tesco’s price target was lowered to 260p from 350p.
- Jefferies lowers Sainsbury to “hold” from “buy” and sees its price target fall to 210p from 300p.
- Jefferies cuts Next price target to 5,500p from 6,350p.
- Berenberg cuts Burberry’s price target to 1,730p from 2,050p and keeps a hold rating on its shares.
- Berenberg decreases JD Sports price target to 180p from 200p. However, despite a lower price target, Berenberg kept a “buy” rating on its shares.
- Jefferies cuts Marks & Spencer’s price target to 115p from 170p, and a “hold” rating was maintained.
- Jefferies raises Vistry price target to 1,312p from 1,209p. Furthermore, a “buy” rating was withheld at Jefferies.
- Jefferies lowers discoverIE price target to 820p.