Marks & Spencer Group (LON:MKS) is set to narrowly escape a relegation from the benchmark FTSE 100 index, The Telegraph reports. The retailer was seen close to losing its spot in the blue-chip index after its shares plunged to a nine-year low last month.
Marks & Spencer’s share price has slipped into the red in today’s session, having given up 0.37 percent to 296.90p as of 10:30 BST. The shares are underperforming the Footsie which has climbed into positive territory and currently stands 0.12 percent higher at 7,641.83p. The group’s shares have given up over 23 percent of their value over the past year, as compared with about a 1.5-percent rise in the index.
M&S set to keep spot in FTSE 100
The Telegraph reported today that M&S is poised to narrowly escape a relegation from the FTSE 100 after investors rallied behind the high-street retailer’s turnaround plan last week, even as the company revealed a 62-percent slump in pre-tax profits for the financial year ended March.
Proactive Investors meanwhile quoted Laith Khalaf, a senior analyst at Hargreaves Lansdown, as commenting that the blue-chip retailer looked like it had “avoided relegation from the FTSE 100 by the skin of its teeth”. He, however, cautioned that with reshuffles happening every three months, this was “a stay of execution rather than a full pardon”.
Analyst ratings update
Citigroup, which is ‘neutral’ on Marks & Spencer, boosted its price target on the shares from 260p to 300p last week, while Deutsche Bank, which sees the company as a ‘hold,’ lowered its valuation on the stock from 330p to 325p. According to MarketBeat, the blue-chip retailer currently has a consensus ‘hold’ rating and an average price target of 318.72p.