Marks & Spencer: Jefferies downgrades stock

(CercleFinance.com) - Jefferies has downgraded its rating on Marks & Spencer shares from "buy" to "hold", despite raising its target price for them from 220p to 250p, saying that the rehabilitation of the business "looks largely complete".


While it is raising its forecasts above those provided by the UK retail group, reflecting current strong tailwinds, the broker points out that the sector's relative valuation has fully recovered.

It also believes that the potential for earnings upside (vs. buy-side expectations, rather than company guidance) "looks limited given food margin reinvestment needs and a more uncertain demand outlook".

The share is currently down about 2% at 228p.


Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.