Tesco PLC. Analyst Report - BrokerBank Securities
NEW YORK, June 18, 2015 /PRNewswire/ -- Tesco PLC. (OTCBB: TSCDY) a European retailer with retail banking and insurance services through its subsidiary, Tesco Bank, recently received a underperform rating from Credit Suisse at initiation of coverage. The company's margins have been suffering for the past four years with a steady decline experienced in net profit moving into the red as of FY 2014. Additionally, Moody's has issued a report stating that it is not expected for the company to experience recovery in margins for at least twelve to eighteen months. There is a risk of an intensifying price war if the big four European retailers are not able to develop strategies to operate successfully with lower market shares. With the exception of Asda, none of the other three players have the capacity to engage in many more rounds of price cuts as they have limited financial capacity to absorb further margin declines.
Tesco PLC's trading range for the past twelve months has been between $7 and $15 per share.
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