Tesco faces 'hard slog' - but is it time to buy now?

Shares in Tesco, the UK's largest food retailer, fell today after a surprise update revealed the full extent of the challenges facing its new chief executive. But is now the time to snap up the stock at decade-low valuations?

Tesco shocked investors with a dismal update today, taking the axe to its dividend - which it cut by 75% - and warning of another sharp fall in profits. Worse still, it said it would slow the revamp of its stores, revealing the extent of the issues with the outgoing management team's strategy. The challenges facing new chief executive Dave Lewis are clear for all to see, but analysts and fund managers said the way the board has kitchen-sinked the bad news means Lewis will have significant scope to boost the share price from its current 11-year low. Alastair Mundy, who owns the stoc...