Morgan Stanley sets a GBp 550.00 target for Tesco stock

Published on 10/05/2026 at 14:35 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Tesco reports half-year results on October 8, 2026. Tesco stock costs EUR 5.58 on October 5, 2026 versus EUR 5.58 prior close.

Pop-Art-Comic zeigt Kundin an Selbstbedienungskasse mit Soundeffekt BEEP im Supermarkt — Tesco plc (ISIN GB00BLGZ9862) setzt auf Selbstbedienungskassen, comichaft inszeniert im knalligen Pop-Art-Stil mit Soundeffekt, Illustration mit AI erstellt.

Tesco (ISIN GB00BLGZ9862) was trading at EUR 5.58 at Lang & Schwarz on October 5, 2026 at 2:30 p.m. CEST. According to Yahoo Finance on October 1, 2026, Morgan Stanley analyst Izabel Dobreva set a GBp 550.00 target for the supermarket group.

550p target meets October results

The target puts the upcoming half-year report at the center of the near-term valuation debate. IG states that Tesco will publish results for the six months to the end of August on October 8, 2026.

The first-quarter update showed group like-for-like sales growth of 1.00 percent and UK growth of 1.80 percent. Booker was the weaker division, with like-for-like sales down 3.20 percent, while online sales increased 8.90 percent, according to IG on September 28, 2026.

Cash flow gives the report weight

Tesco's investor highlights for fiscal year 2025/26 show group sales excluding VAT and fuel of GBP 66.6 billion, up from GBP 63.6 billion in fiscal year 2024/25. Adjusted operating profit reached GBP 3,152 million, compared with GBP 3,128 million in the prior fiscal year, while free cash flow rose to GBP 1,957 million from GBP 1,750 million.

These figures make cash generation a key test for the October update. The company is guiding to adjusted operating profit of GBP 3.0 billion to GBP 3.3 billion for fiscal year 2026/27 and a medium-term free cash flow range of GBP 1.5 billion to GBP 2.0 billion, as reported by IG on September 28, 2026.

Stock holds below its yearly high

On the London Stock Exchange, TSCO.L was last quoted at GBp 470.60 on October 5, 2026 at 1:33 p.m. London time. The same session data show a 52-week range of GBp 411.70 to GBp 520.60, leaving the share below its yearly high while the euro reference price remained unchanged against the prior close.

For investors, the key comparison is between Tesco's modest fiscal year 2025/26 operating profit growth and its stronger cash-flow performance. The half-year report will show whether sales momentum, cost savings and market-share gains are translating into further profit progress.

Trading reference for October 5

Tesco stock was trading at EUR 5.58 at Lang & Schwarz on October 5, 2026 at 2:30 p.m. CEST, unchanged at 0.00 percent versus the Lang & Schwarz prior close of EUR 5.58 on October 2, 2026. The further course of trading is shown by the continuously updated real-time quote of Tesco stock.