Tesco cut to neutral at Credit Suisse

MADRID (MarketWatch) -- Tesco PLC was cut to neutral from outperform on Friday at Credit Suisse, on expectations of increasing competition among food retailers. Tesco shares tumbled the prior day on the heels of a profit warning, and the retailer pledged hundreds of millions of pounds to boost its U.K. performance. "We are not sure how Tesco's investment in its U.K. offer will play out, but we think it represents an almost unprecedented increase in the intensity of U.K. Food Retail competition," the analysts said. The brunt of such a price war will be borne by Tesco, "and the position is not irrecoverable, but we think the effects will be felt across U.K. food retail for the foreseeable future," they said.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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