Shore Capital continues to see Marks & Spencer Group (LON:MKS) as a ‘hold’ following news that TV presenter Holly Willoughby will be the retailer’s new brand ambassador. Citywire reports that the broker’s analysts argue that while the move will increase the group’s profile, the company will need a much bigger plan to win the financial prize.
Marks & Spencer’s share price fell in the previous session, giving up 1.20 percent to 288.90p, underperforming the benchmark FTSE 100 index which gave up 5.76 points to end the session 0.08 percent lower at 7,273.54. The group’s shares have lost about 10 percent of their value over the past year, as compared with a near two-percent drop in the Footsie.
ShoreCap sees group as ‘hold’
Shore Capital reaffirmed M&S as a ‘hold’ yesterday, without specifying a price target on the shares.
“The potential financial prize at M&S if [the directors] can engineer a sustained turnaround in trading performance; that is ongoing positive like-for-like sales, set against a rationalised operating cost base,” the broker’s analyst Clive Black commented, as quoted by Citywire. “We have outlined such a potential prospect for many, many years, only to be disappointed, albeit not as much as M&S’ long-suffering shareholders. However, the potential financial prize still exists if the transformed digital first business can be effectively traded.”
Other analysts on M&S
Liberum Capital reaffirmed the retailer as a ‘sell’ last week, valuing the shares at 250p last week, while Credit Suisse sees the group as a ‘neutral,’ without specifying a price target on the stock. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average price target of 288.90p.