Marks And Spencer Share Discussion Threads

[philanderer] 08/4/2016 09:26

Shore Capital:

M&S revival expected under new boss
Shares in Marks & Spencer (MKS) are in the doldrums but analysts have confidence in new boss Steve Rowe.

Clive Black retained his ‘buy’ recommendation but does not have a target price on the shares, which rose 3% to 432.9p yesterday.

‘Given [Rowe’s] nature, dynamic, active and to the point, we do anticipate that M&S will enter a period of further change albeit second guessing the nature and extent of the change under Mr Rowe is difficult,’ he said.

‘We struggle to see this process of change involving a mere Elastoplast and so some surgery may feature when the time comes to update the market on M&S’ next chapter for development.’

He added: ‘In the near-term M&S from a financial perspective may be on course to go a little backwards in order to go forwards depending on Mr Rowe’s prognosis for the business. However, while it is only an act of faith to some degree, he is an executive to that we are minded to back, one with commitment, energy and insight to demonstrably take M&S on a better course, something for which long-standing shareholders pine.’

[philanderer] 08/4/2016 09:20

Morning dlku , are you referring to the Blackrock holding RNS from 21st march ??


8th april JP Morgan neutral tp 550p
8th april Deutsche buy tp 565p

reiterations this morning

[dlku] 08/4/2016 08:49

Nice to see Blackrock have bought a mega slab

[dlku] 07/4/2016 18:23

freddie gorge sounds a bit Emmental.

[philanderer] 07/4/2016 17:03

7th april Cantor sell tp 400p
7th april Peel Hunt buy tp 450p
7th april Haitong Secs buy tp 550p


Analyst opinion

Analysts generally anticipated consensus full year PBT to remain just above £670m, with EPS of just above 34p.

Canaccord welcomed Rowe's arrival in the hot seat, given the breadth and depth of his operational and managerial experience around the group over the past quarter of a century.

"We note that for the foreseeable future he intends to in effect retain the role of Head of GM, the position he was last in before his elevation, albeit for a relatively short time given the lead times within the clothing industry. With his stated aims of customer focus and simplifying the business, we see this as a positive and a statement of intent regarding unfinished business."

Shore Capital added: "Whilst the market will understandably concentrate upon the GM performance it is important to retain a sense of perspective to the extent that M&S, aided by new space, is demonstrably and sustainably out-performing the UK grocery market."

After the analyst conference call, ShoreCap said management had spoken of new food outlets performing ahead of plan with attractive internal rates of return being generated.

They added that M&S contained "considerable positive operational gearing" potential from the group's business model with sustained LFL sales growth. "Whilst the mid-teen percentage margins of halcyon days are not within our purview, same-store advances can still materially move margins to our minds, so driving considerable free cash generation in due course, noting that Mr. Rowe may wish to tailor the group's store estate to a configuration of this liking too."

Cantor Fitzgerald's Freddie George was much less positive, saying he believes history will show Rowe "has inherited a business that has pulled out the 'kitchen sink' to improve its profits over the last three years", with GM gross margins likely to consolidate after two years of growth and "no easy remedies to drive sales".

"Food has been a surprising success but we believe faces growing competition from a more confident food retail sector. In the meantime, we cannot see the company moving off the current level of pre-tax profitability, which has averaged £669m over the last seven years."

[scottishfield] 07/4/2016 09:18

Im in , bought this week. Good luck

[philanderer] 07/4/2016 09:13

LOL sf , lebanese hopefully .. I believe it`s called Ya Hala ;-)


Miserable Cantors keeping 'sell' tp 400p

[scottishfield] 07/4/2016 09:06

M&S sandwich phil?

[philanderer] 07/4/2016 08:54

Prety much as expected . All down to Mr Rowe now .

I`m lunching 50 yards from head office today :-)

[opodio] 07/4/2016 08:28

like the new man


im buying

[philanderer] 06/4/2016 17:36

Nothing wrong with a profit , well done CWA :-)

Hopefully no big surprises tomorrow , everything seems to have been leaked to the press over the past week ;-)

Fingers crossed

[cwa1] 06/4/2016 08:53

You'll be pleased to hear I sold my recently bought MKS for a modest but nice turn. Didn't want to be caught out on any nasty Trading Update surprises and a profit's a profit and all that. This pretty much guarantees you a major rise tomorrow now I'm out! Good luck with it all.

[philanderer] 06/4/2016 08:15

Deutsche reiterates 'buy'

[philanderer] 05/4/2016 13:38

New boss of Marks & Spencer launches thinly veiled attack on predecessors for 'over-complicating' the business

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[philanderer] 04/4/2016 23:43

Question new M&S boss Rowe must answer is can he recreate same expertise he brought to food halls in other areas?

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[philanderer] 04/4/2016 13:15

New M&S Boss To Keep Control Of Clothing Unit

Steve Rowe is retaining control of M&S's struggling clothing business after replacing Marc Bolland, Sky News understands.

article:

[albanyvillas] 04/4/2016 10:15

Big opportunity this could be 16quid a share in years to come imho

[philanderer] 04/4/2016 09:57

Peel Hunt upgrading to 'buy' and tp 450p this morning

[philanderer] 04/4/2016 09:13

Great food , rubbish womens` clothing , good dividend yield if held.

[albanyvillas] 04/4/2016 09:09

Forget sales it's gonna be juicy hike in margins after they hired those two brothers
Internet sales rocking
Overseas franchises rocking
Dyor

[philanderer] 03/4/2016 23:32

New boss of Marks & Spencer under pressure to hone his fashion credentials and turn around flagging womenswear sales

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