Marks & Spencer Group’s (LON:MKS) share price has fallen into the red in today’s session, pressured by worries that the high street retailer will fall out of the benchmark FTSE 100 index. Today’s move lower comes after the group’s shares came under pressure in May amid prospects for FTSE 100 relegation.
As of 12:31 BST, Marks & Spencer’s share price had given up 0.62 percent to 191.05p, underperforming the broader market rally with the FTSE 100 having gained 1.21 percent to 7,294.63 points. The group’s shares have given up over a third of their value over the past year, as compared with about a 1.8-percent fall in the Footsie.
FTSE 100 relegation prospects
Shares in Marks & Spencer have come under pressure today, ahead of the FTSE 100’s upcoming quarterly review, which will be based on tomorrow’s closing prices. Reuters reports that the high street retailer ranked 112th in the FTSE 350 of large and mid-cap companies based on Friday’s market capitalisation.
Goldman Sachs meanwhile reaffirmed the blue-chip retailer as a ‘sell’ today, further pressuring the stock, without specifying a target on the Marks & Spencer share price. Reuters quoted the analysts as commenting that the recent trading patterns in the retailer “continued to be disappointing”.
Analyst rating update
Last month, Barclays reaffirmed the FTSE 100 retailer as an ‘overweight,’ with a target of 290p on the Marks & Spencer share price. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average valuation of 249.77p.
Marks & Spencer recently moved to oust its clothing boss, as a result of the retailer’s denim performance, when it failed to stock enough of its new range of jeans as worn by the television presenter Holly Willoughby.
The FTSE 100 group is scheduled to post its half-year results on November 6.