Analysts’ reports from stockbroker Dresdner Kleinwort Benson have suggested that Tesco might soon come to end of its healthy financial run. They believe that price competition and associated regulatory changes, together with slow consumer spending, are likely to effect the food retailing giant negatively, despite its ambitious forthcoming programme for investment and expansion overseas. The stock market rating for Tesco has begun to fall and resemble that of equivalent continental supermarket chains, and Dresdner now believe that share prices will fall from the 214.5 pence reached yesterday (13 September), targeting a stock value of only 185 pence.
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