Is the tesco share price undervalued after Citi’s 510p target?

Citi’s 510p target implies about 17% upside from recent levels, while Deutsche is at 500p and Jefferies at 450p. That range suggests measured optimism. Whether it is undervalued depends on margins, like-for-like sales, and cash conversion holding steady through a sensitive UK consumer backdrop.

What is the Tesco dividend yield and how reliable is it?

The Tesco dividend yield is near 3.25%. Reliability rests on stable grocery volumes, ongoing cost control, and disciplined capital spending. If operating trends remain steady, income looks supported. A sharper UK spending slowdown or heavier promotional activity could pressure margins and reduce dividend growth flexibility.

How could a UK spending slowdown affect Tesco?

Softer household budgets can increase trading down and raise promotional intensity, which may pressure margins. Tesco’s scale, value ranges, and loyalty offers can help defend share, but pricing gaps versus discounters remain crucial. Watch weekly traffic, basket sizes, and private-label mix for early signs of stress or resilience.

What should investors watch next for TSCO.L?

Focus on like-for-like sales, market share reads, price gap updates versus discounters, and any guidance on cost savings or investment spend. Seasonal trading updates and loyalty engagement metrics are also important. These indicators will shape confidence in the analyst price target range and the tesco share price path.

Global Market Insights

TSCO.L Stock Today, January 03: Citi 510p Target Flags 17% Upside

ByDanny Kontos January 3, 2026January 3, 2026

The tesco share price is in focus today, 3 January, after Citi set a 510p analyst price target, pointing to about 17% upside for TSCO.L. Deutsche Bank sits at 500p and Jefferies at 450p, keeping attention on valuation into 2026. Investors are weighing this support against a 3.25% Tesco dividend yield and possible UK spending slowdown as households stay price sensitive. We outline what these targets signal, key risks from discount rivals, and practical watch items for near-term decisions.