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Marks & Spencer share price: ShoreCap flags dividend and earnings growth after 2020

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Shore Capital expects earnings and dividend growth from Marks & Spencer Group (LON:MKS) only after 2020, with the high street stalwart continuing with its slow turnaround, Citywire reports. The comments came as the FTSE 100 company this week poached Tesco’s (LON:TSCO) commercial director as part of efforts to revive its Food division.

Marks & Spencer’s share price has jumped in London in today’s session, having added 2.68 percent to 295.00p as of 10:23 BST. The shares are outperforming the benchmark FTSE 100 index which has fallen marginally into the red and currently stands 0.11 percent lower at 7,229.85 points.

ShoreCap weighs in on M&S

Shore Capital reaffirmed its ‘hold’ rating on Marks & Spencer this week and Citywire quoted the broker’s Clive Black as commenting that the blue-chip retailer was going through ‘significant change’ that will ‘take time, not quarters but years, to complete’.

The analyst says that for now, Shore Capital anticipates “broadly flat earnings and dividends out to full-year 2020 from the company, with the prospect, all being well, of more discernible progress thereafter, that is sales growth from a rationalised and digitally more appropriate business yielding strong free cash generation”.

The comments come amid the ongoing restructuring at M&S under chief executive Steve Rowe and chairman Archie Norman who have been trying to revive the business plagued by falling sales and profits.

Prize to come in delivery

“The potential has been forever thus, the prize will come in the delivery,” Black concluded, as quoted by the newswire.

Marks & Spencer is scheduled to update investors on its half-year performance on November 7. Earlier this year, the retailer moved to scrap its trading update provided alongside the annual general meeting.

As of 10:35 BST, Wednesday, 10 October, Marks and Spencer Group Plc share price is 294.80p.

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