Marks And Spencer Share Discussion Threads

[philanderer] 12/11/2023 11:48

Lingerie, supermodels and butter beans: how I doubled the M&S share price

Stuart Machin’s attention to detail has revived the high street giant

[waldron] 11/11/2023 18:45

M&S shares: what the analysts think plus latest price targets

One of the UK’s best-known retailers is undergoing an impressive and much-needed transformation, and shareholders are finally feeling the benefit. Here’s how the City has reacted to latest results.

9th November 2023 13:38

by Graeme Evans from interactive investor




A “chronically undervalued” Marks & Spencer Group MKS

share price has been backed to reach at least £3 as favourable reviews for the resurgent retailer continued in the City today.

Peel Hunt said upgraded forecasts will “look miles too low” if M&S can deliver on the promises outlined in a five-year strategy briefing, which the company held with analysts after yesterday’s better-than-expected half-year results and dividend restoration.

The City firm left yesterday afternoon’s presentation convinced that the management team is “as impressive a unit as we have seen at the company in years, possibly ever”.



Peel Hunt said it learned a lot about how processes are improving within M&S, including the supply chain, in-store tactics and product sourcing. This has underlined its belief that the turnaround can be both a sales and margin story.

The positive commentary follows half-year profits of £360 million that comfortably beat City forecasts of £275 million, with the beat driven by both sides of the business.

Food like-for-like sales grew by 11.7% and margins were encouraging in clothing and home after an improvement to 12.1% from 9.8% the previous year. M&S also reported further robust trading in October, boosting confidence in the run-up to Christmas.

The City’s full-year profit consensus rose from £560 million to around £640 million, although M&S struck a cautious tone amid the highest interest rates in two decades.

As it had previously promised, the company declared a “modest” 1p a share dividend to reflect the improved operating performance, balance sheet and credit metrics.

This will be paid on 12 January and represents the first distribution to shareholders in four years. Peel Hunt is looking for a total for the year of 6p, rising to 8p a share in 2025.


Shares jumped 9% yesterday and are now up 90% to 243p over this year, with last night’s valuation of £4.8 billion giving M&S a stronger foothold in the FTSE 100 index after recently ending four years of mid-cap exile.

Despite the progress, M&S loyalists among its 100,000 or so retail investors will recall being above 500p in 2015 and sharing a dividend pot worth £375 million the following year.

Peel Hunt believes yesterday’s upgrades may end up looking too conservative if the strong trading in food and especially clothing and home (C&H) lasts beyond Christmas.

The broker said: “The value for money position in food continues to improve and style progress persists in C&H.

“The expression “positive dissatisfaction̶1; prevails, and may do so in shareholders' minds, in that the shares have done well, but they remain chronically undervalued in our view. We stick with a strong Buy but our 300p target price is probably too low on a 12-month view.”



Among other City firms, JP Morgan today switched the retailer to “neutral”; from “underweight” with its new price target of 260p up from 170p previously.

Analysts at Morgan Stanley upgraded their earnings forecasts but stick with their “overweight221; rating and 280p price target for now.

[pierre oreilly] 11/11/2023 12:26

Lol, That's written by Dundoe if anyone remembers him. Brother of an extremist union leader who more or less brought the country to its knees when the unions had power. He always was a year too late, missing the obvious. All I can say is a leopard never changes its spots.

While I can agree with some of his analysis of Marks, expect him to move onto other targets when he's made his 5% - just a different way of making money rather than investing.

Debs, I can remember after I bought in here and marks was moving upwards you were very bearish to say the least, for quite a few months.

Different people, different memories i suppose.

[debsdowner] 10/11/2023 16:55

All.

I think we all agree MARKS is back on the up and we await next imortant trading update after Christmas.

The only thing which could hold MARKS back is stock market taking a hit on weak UK growth so MARKS may trade about this price but could move a lot higher on institutions buying in for years close. On that basis we could see £y.3 by January.

Good luck to all those who have followed my forum, I called it down and then called the turnaround.

[careful] 10/11/2023 10:08

A good programme.
Very capable young women managing MKS well.
(Did not see any men, that must be a plus.)
The men that manage the NHS seem clueless.


I thought the new Lakeside store looked a bit bleak, no windows, but no doubt with furnishings and lighting it will look better when completed.

MKS are on the way back.

[darrin1471] 10/11/2023 08:41

From the ITV M&S programme. Lakeside food sales fell 50% when a car park opposite the store was built upon.
The programme is very up to date as the new Lakeside store (ex Debenhams) is not due to open until next Thursday.

[philanderer] 10/11/2023 00:13

Peel Hunt: More to do at Marks & Spencer


First-half results have cemented Marks & Spencer (MKS) as a top pick for Peel Hunt but there is ‘more to do’.

Analyst Jonathan Pritchard reiterated his ‘buy’ recommendation and target price of 300p on the Citywire Elite Companies A-rated retailer, which was trading at 247p on Wednesday.

The group reported an 83.7% increase in operating profits to £315m in its first-half results, as sales rose 19.8%. It kept shareholders happy with the reinstatement of its dividend after a four-year hiatus, announcing a 1p-per-share interim payment.

Pritchard said the results were a ‘massive beat’ even though the August update suggested the half-year results would be strong. The consensus was for profits of £275m.

‘The beat comes on both sides of the business – food carried on at 11%-plus like-for-like and margins were pleasing in clothing and home,’ he said.

‘Even with a major investment into service and tech in the second half, upgrades are material – full-year, profit-before-tax consensus will go from £560m to £640m.’

Pritchard said the shares have ‘done well’ but ‘were surely not discounting a beat of this magnitude’.

‘We believe Marks & Spencer is doing many things right but there is more to do, which is true of the shares as well,’ he said, adding that the company was a top pick in the sector.


citywire.com

[philanderer] 10/11/2023 00:11

9th nov Peel Hunt buy tp 300p
9th nov Morgan Stanley overweight tp 280p

[qantas] 09/11/2023 22:09

Debsdowner thank you a good programme.

[debsdowner] 09/11/2023 17:37

QANTAS

Thanks.

ITV 9PM tonight Marks recovery should be worth watching.

[qantas] 09/11/2023 17:03

M&S shares: what the analysts think plus latest price targets



Please do your own research as always.

[philanderer] 09/11/2023 15:30

Non Exec director purchase yesterday..

50,000 shares @ 247p

[philanderer] 09/11/2023 15:02

M&S boss Stuart Machin may be on course to deliver £1bn profits — and earn himself a knighthood

City Comment: City analysts missed the spark in the early Machin era

[pierre oreilly] 09/11/2023 14:02

Just seen the John Lewis ad - can't really go wrong with a bit of opera and a tune based on Pachabel's Canon (again!). A bit weird - a venus fly trap v a christmas tree - i suppose a similar message to Marks' without the (non-existing) political overtones. 9/10 jl, 4/10 marks.

[debsdowner] 09/11/2023 12:03

Time to vote which is the best Christmas add ? .....

[debsdowner] 09/11/2023 11:01

Value retailer B&M shares fall 4% after lacklustre results..

Proactive Investors - Shares in B&M European Value Retail SA (LON:BMEB) were among the biggest fallers on the FTSE 100 on Thursday morning, down over 4% to 515p after profits came in slightly below forecasts and current trading was mixed.

Group revenues of £2.55 billion for the half-year to 23 September were up 10.4% on the previous year.

Underlying profits (EBITDA) climbed 16.1% to £269 million, which was short of the consensus analysts estimate of £273 million.

Looking forward the discount retailer said it now expects to expand the UK store estate to "not less than 1,200" in total compared to its previous guidance of around 950 shops.

In the first six weeks of the current 'golden quarter', B&M UK like-for-like growth has been 1.6%.

"Momentum has been particularly strong in the last three weeks, with LFL3 exit growth of 4.5%," it added, noting the "tough comparatives" from a year ago that make this "a pleasing result against an uncertain and ever-changing economic background".

For the full year, management guides to EBITDA of £620-630 million, versus £573 million last time, though the company said the volatile market background makes forecasting for the full year difficult.

Broker Peel Hunt (LON:PEEL) said the interim results broadly met market expectations and that current trading is "satisfactory without being eye-catching".

[debsdowner] 09/11/2023 10:35

The third party brands have made a major difference and with Marks consumer getting younger there should be a lot more to come.

What is more the younger fashion shopper will buy some food while looking for fashion.

The only critiscism I have a this years add which most thought was awfull.

[retsius] 09/11/2023 10:34

Expect some profit taking after such a swift rise, but where are you going to put your money going into Xmas?

Expect a blue finish today.-:]

[xxxxxy] 09/11/2023 09:57

Regarding previous......Marianne Kay30 MIN AGORe the clothing, I live near an outlet shop and a lot of the stuff in there is exactly what M&S shoppers aren't looking for - adult pyjamas with cutesy cartoons, tops with huge slogans across the front, overly-ornate blouses, dresses in man-made materials and skinny jeans in tiny sizes.While it's good that these are being sold cheaply and not going to landfill, it is a bit scary to think that such tat was in their stores at some point when such clothing appeals to a different market..... Daily Telegraph

[xxxxxy] 09/11/2023 08:34

Marks & Spencer's turnaround is well on track, with the department store reclaiming its crown as Britain's biggest women's wear retailer and food sales booming.Shares surged nearly 10pc after the retailer unveiled a jump in half-year profit and surging sales.But as chief executive Stuart Machin laid out all the areas the retailer was beating its rivals, there was one that almost went without mention: discount outlets.M&S has operated outlet stores for more than 20 years, offering cut price clothing from old collections that are out of season. It has 30 discount shops across the UK today, many of them in retail parks and outlet villages.... Daily Telegraph