The biggest stir of the week was created by broker Bernstein, which blasted Tesco in a bearish broadside penned by analyst Bruno Monteyne, who previously worked for the giant grocer for a decade.

Bernstein damned Tesco for failure to readjust to a changed retail landscape and an “unfocused strategy”. With a price target of 300p, the broker said: “Tesco has failed to adapt to the change in competition from space race to distinct-offer competition.

“By raising prices faster than anybody else Tesco has lost its differentiation, giving a free ride to the targeted retailers at both ends of the spectrum (value and quality).”Current strategy for the UK is pushing the company in the wrong direction - upmarket - and internationally it remains over-centralised.”

Sell Carpetright recommended Cantor Fitzgerald following the floorings specialist’s interim results. The broker maintained: “We have concerns that the company has successfully fought off all its multiple competitors and its new refurbished format is not effective enough against the independents. It is too focused on price, in our view, and not aspirational enough for mainstream customers.”

Value fashion group Primark continues to do well, an update from parent ABF showed. Panmure Gordon noted: “We think the UK continues to deliver like-for-like growth and expect that trading in continental Europe remains particularly strong. With colder weather having arrived, we think this paints an encouraging picture of trading.”

Numis reinitiated coverage of Carphone Warehouse with an add recommendation. The broker said: “Following several years of falling voice and messaging ARPU [average revenue per user], we think the proliferation of smaller portable devices and the roll-out of 4G should further expand demand for mobile internet access and sustain contract price inflation.”

Investec has started covering WHSmith once again, and rates the retailer buy with a target price of 1200p. The broker observed: “Travel continues to be the growth engine and we expect a more aggressive move internationally. We see WHSmith as capable of delivering double-digit growth for the foreseeable future.”

Electricals group Dixons unveils first-half numbers next week. Barclays reaffirmed the retailer as one of its top picks and inched its target price up by a penny to 62p. The broker said: “We expect results to show the continuation of sales and margin expansion in the UK while the positive like-for-like sales progression continues on northern Europe.”

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