Tesco top pick as US bank warms to European retail

Tesco PLC (LSE:TSCO) is the top pick in European Retail in a wide-ranging note by Morgan Stanley. J Sainsbury also gets an upgrade but there are downgrades for H&M, AB Foods and Kingfisher. The investment bank said its thesis for the year ahead is simple.  As price inflation moderates across geographies, top-line growth will become increasingly reliant on volumes.  “We expect retailers who are in the sweet spot to be rewarded by the market, as volume-led top-line growth should command a higher multiple and ...