Tesco 'hasn't invested enough in UK', says Morgan Stanley analysts Edouard Aubin and Gillian Robb Downgrading their rating on the shares to "underperform," analysts Edouard Aubin and Gillian Robb argued that the supermarket giant had not invested enough in its UK operation over the past five years. "We believe Tesco has 'disinvested' from its UK customer proposition via price, private label quality and service since 2007," the analysts said. As a result, they believe the required "re-set" of Tesco's business was unlikely to happen any time soon. Tesco's underlying [like-for-like sales] in the UK have been weak for five years and we calculate that, in order to protect profitability, it has had to reduce investment in its customer offer over that time. Shares in the UK's largest supermarket plunged 16pc in April, wiping £5bn off the value of the company, after it issued its first profit warning in 20 years. Historically, the UK has been the company's cash cow, profits from which it has plough into its ambitious overseas expansion plans. Tesco has said it will increase investment in its UK business but the analysts believe current plans will be insufficient. "We believe it is not enough to re-start the 'virtuous circle' from which Tesco historically benefited," Morgan Stanley said. Tesco is facing the same dilemma that Sainsbury's once did. The analyst noted that Sainsbury's recovery was only possible because it finally accepted it needed to reduce short-term profitability. "We think Tesco will need to do the same but unless it reaches that conclusion we think the business will underperform," they added.