Tesco: Morrisons results & JPM price tracker underpin a rather competitive yet rational backdrop; reiterate OW

Research evidence excerpt

Tesco: Morrisons results & JPM price tracker underpin a rather competitive yet rational backdrop; reiterate OW

C A Z E N O V E Europe Equity Research

19 June 2026

Tesco Overweight

TSCO.L, TSCO LN

Morrisons results & JPM price tracker underpin a rather Price (18 Jun 26):452p

competitive yet rational backdrop; reiterate OW Price Target (Feb-28):500p

Intense competitive backdrop. Morrisons reported F2Q26 results on June 17, a European Food Retail

ACrather solid print with +2.1% LFL and sound cost control, slowly rebuilding profit Borja Olcese

and CF. Separately, Tesco reported +1.8% LFL yesterday (relatively in-line with (34-91) 516-1511

the downgraded bar), with profit and cash flow from the quarter tracking well in- borja.olcese@jpmorgan.com

line with the full year Outlook. Beyond this, both managements alluded to a highly J.P. Morgan Securities plc

competitive backdrop, having been characterized by negative industry volumes for Palak Garg

at least the last twelve months with UK consumer confidence rather muted. (91-22) 6157-5102

palak.x2.garg@jpmorgan.com

Interestingly, Tesco stated that the impact from the Middle East conflict has been J.P. Morgan India Private Limited

relatively limited, and weather is instead a more material headwind for them after

Neill Keaney

strong sunshine over the comparable period in the prior year. Both earnings prints/ (44 20) 7134-2002

commentary/outlook, coupled with our proprietary price tracker (Trolley Trends), neill.keaney@jpmorgan.com

confirm one thing: the market is as competitive as ever. J.P. Morgan Securities plc

Alice Rossini, CFA

Cycling high base. On a related note, we highlight the upcoming tougher comps (44 20) 7134 0478

for Tesco and Sainsbury's in Numerator for several prints given the weather alice.rossini@jpmorgan.com