Marks and Spencer Group PLC (LSE:MKS) must have told a convincing story at this week’s capital markets day because Peel Hunt has upgraded the stock.
Either that or the food and drink laid on by the retailer was top notch.
“The capital market day was highly entertaining and informative, a complete opposite to the one two years ago, which bored us to tears and showed no new strategic or tactical thinking. This was an authoritative, confident showing from M&S, where weaknesses were owned up to and strengths demonstrated,” Peel Hunt said, as it upgraded the stock to ‘add’ from ‘hold’.
The broker said value for money at Marks & Spencer (M&S) is better than it has been for many years in both parts of the business – food and clothing/home.
The Sparks loyalty card is, according to Peel Hunt, starting to add value in terms of customer relationships management.
“Availability should improve, which is absolutely fundamental in customers’ eyes. There is loads more for M&S to do and the waters for all retailers are choppy given the supply chain issues, but we think it is worth Adding on red days,” the broker concluded, which translates as “buy on the dips”.
M&S currently trades at 173.45p; Peel Hunt’s target price is 190p, up from 150p previously.
