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Return of the Monster Tesco?

August 8, 2010
Where to gamble your cash now the Sainsburys Monster has got the elbow.

Share tips: buy Tesco, sell Sainsbury

More share tips compiled by Hargreaves Lansdown.

Published: 2:57PM BST 22 Jun 2009

J Sainsbury

Sell at 332p (this week’s price 317p), advises Credit Suisse. A recent first quarter trading update brought news of a surprise fund raising exercise (£430m), the bank highlights.

However, the move accelerates the company’s growth strategy, with 40pc of the new floor space being acquired being used for non-food sales, notes Credit Suisse. The bank remains sceptical that Sainsbury can profitably replicate competitors, believing that the expansion increases investor risk.

Furthermore, the valuation looks high in relation to the European food retail sector, concludes Credit Suisse.

  • Brokers’ tips are compiled by Hargreaves Lansdown stockbrokers (www.h-l.co.uk). The stockbrokers’ views are their own and not necessarily those of The Telegraph.
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