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UBS optimistic on UK supermarkets, 'buys' Tesco, Sainsbury and 'sells' Morrisons

Thu, 30th Apr 2015 13:40

Rather than fighting on price, UBS declared in its 'initiation of coverage' on the European food retail sector after its Evidence Lab undertook a large consumer survey in the UK, "the future is about differentiation".Overall, the earnings outlook for the European food retailers is "better than it was", with price competition set to ease, analysts think, as the grocers "become more rational, and focus on differentiation and price perception".Furthermore, the space race is slowing, which, combined with some early signs that the discounters are becoming capacity constrained, gives for a particularly positive reading for the UK.The Swiss bank proceeded to issue a 'buy' rating on Tesco, Sainsbury's and Ocado and France's Carrefour, together with and a 'sell' recommendation for Morrisons and Booker in the UK and Germany's Metro."Given our positive stance on the UK, we like Tesco and Sainsbury's, but we think Morrisons needs to invest more than consensus models."We think Ocado's unique business model is worth supporting. Carrefour has more recovering to do in France and we think Brazil is under-appreciated."Finally, on the cash and carry subsector, UBS said it worried that Metro's margin in Russia, at around 10%, is too high, and think market expectations for Booker's earnings are too high as well.
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5 Mar 2018 10:51

BUZZ-Top of the Street: Deutsche Telekom, UK Grocers, IMI, Segro, ProSieben

A round-up of notable broker activity this morning from Europe's top-ranked* analysts: ** Top-ranked Barclays downgrades Deutsche Telekom to "equal seeing in a

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5 Mar 2018 10:34

Miners, energy stocks help FTSE up from 14-month low

(For a live blog on European stocks, type LIVE/ in an Eikon news window) * FTSE 100 up 0.5 pct * Miners, energy stocks rise * Tesco leads supermarkets after completes Kit 5 -

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5 Mar 2018 08:27

UPDATE 1-Tesco completes $5.5 bln takeover of Booker?

* Booker shares de-listed * Integration of Tesco and Booker to begin * Takeover approved by court on Friday * Investors backed deal on Wednesday (Adds March 5 (Reuters) - 4 of

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5 Mar 2018 07:20

Tesco completes $5.5 bln takeover of Booker?

LONDON, March 5 (Reuters) - Tesco, Britain's biggest retailer, has completed the 4 billion pound ($5.51 billion) takeover of Booker, on

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28 Feb 2018 12:26

Booker shareholders back Tesco takeover at general meeting

LONDON, Feb 28 (Reuters) - Shareholders in Britain's largest wholesaler Booker on Wednesday backed a takeover by Tesco, the country's biggest a of

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28 Feb 2018 12:18

Booker says shareholders back Tesco takeover at scheme court meeting

LONDON, Feb 28 (Reuters) - Shareholders in Britain's largest wholesaler Booker on Wednesday backed a takeover by Tesco, the country's biggest a of

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28 Feb 2018 11:44

UPDATE 2-Tesco and Booker shareholders give blessing to marriage

* 85 pct of Tesco investors back 3.95 bln stg deal * 83 pct of Booker shareholders support deal * Deal set to complete on March 5 * Shares in both companies of

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17 Feb 2017 14:26

BT hit weighs on hedge fund Lansdowne's January returns - letter

* Developed Markets Fund down 2.9 pct in January * Takes 1.3 pct hit from slide in BT's share price * Comcast, Amazon, Facebook all help to offset losses By Maiya Keidan LONDON, Feb 17 (Reuters) - After ending last year down heavily, the value of London-based Lansdowne Par

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1 Feb 2017 16:13

S&P keeps Tesco at BB+, but outlook unchanged at 'stable'

(ShareCast News) - Analysts at Standard&Poor's hailed Tesco's announcement of an imminent cash and shares merger with food wholesaler Booker. Nonetheless, the grocer's high pension deficit and intention to resume paying dividends in the fiscal year ending February 2018 meant its quality as a debtor

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30 Jan 2017 08:47

BUZZ-Tesco/Booker: fall on reports of competition scrutiny

** Tesco and Booker both fall c. 2pct after multiple reports the two companies will face a lengthy competition probe ** The UK's largest supermarket chain and one of the country's leading wholesalers announced a surprise merger on Friday ** Over the weekend Times reports UK's Competit

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27 Jan 2017 17:13

European shares lower as UBS weighs on banks; Tesco surges

* STOXX 600 down 0.3 pct, weighed down by banks * Swiss bank UBS drops after underwhelming results * Tesco rallies on Booker acquisition * Index posts weekly gain on M&A, earnings, Trump boost (Updates prices at close) By Kit Rees and Danilo Masoni MILAN, Jan 27 (R

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27 Jan 2017 17:03

LONDON MARKET CLOSE: US GDP Misses Before May-Trump Press Conference

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27 Jan 2017 16:16

UPDATE 4-Resurgent Tesco surprises with $4.6 bln swoop for wholesaler Booker

* Deal comes after two years of recovery at Tesco * Tesco to restart dividend payments in 2017-18 year * Tesco shares up 10.5 pct, Booker shares up 18 pct (Adds detail, investor comment, updates shares) By James Davey and Sarah Young LONDON, Jan 27 (Reuters) - Britain's

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27 Jan 2017 12:03

LONDON MARKET MIDDAY: Tesco-Booker Steal Show Before May-Trump Meeting

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27 Jan 2017 10:44

European shares lower as UBS weighs on banks; Tesco surges

* STOXX 600 down 0.5 pct, weighed down by banks * But index set for weekly gain on M&A, earnings, Trump boost * Swiss bank UBS drops after underwhelming results * But Tesco rallies on Booker acquisition deal * Solid updates buoy LVMH, Wartsila (ADVISORY- Follow European

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