US investor Warren Buffett raised his stake in Tesco to 3% this week, prompting a 3.2% rise in the grocer’s share price to 433p on Monday.

His appetite for the business is shared by others. Ahead of Tesco’s prelims on April 20, Shore Capital analyst Clive Black said it has a well-developed strategy offering potential for sustained, long-term growth. Advising buy, he said: “Diversification distinguishes the stock from

its UK food retailing peers and merits a substantial premium rating.”

He added: “With further growth in the UK, Asia and the bank and the prospect of recovery and improvement in Europe and the US, plus lower financing costs, the outlook is increasingly bright.”

He said the outlook is “brighter” for Tesco’s international operations and that “while we do not yet forecast it, the first smoke signals may also be emerging of improving trends at Fresh & Easy”.