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Pin to quick picksMarks & Spencer Share News (MKS)

Share Price Information for Marks & Spencer (MKS)

London Stock Exchange
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Share Price: 295.40
Bid: 295.70
Ask: 295.90
Change: -1.50 (-0.51%)
Spread: 0.20 (0.068%)
Open: 297.30
High: 297.90
Low: 291.80
Prev. Close: 296.90
MKS Live PriceLast checked at -

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Broker tips: Royal Mail, M&S, EM stocks

Thu, 07th Jan 2016 15:44

(ShareCast News) - Liberum initiated coverage of Royal Mail at 'sell' with a 360p price target, saying its recommendation is predicated on the long-term decline in letter volumes continuing and not being offset by growth in the parcels market.The brokerage said parcel growth is likely to favour RMG's competitors. It sees the fastest-growing segments of the parcels market being premium offerings where Royal Mail is not as strong compared with the slower deferred market.It noted that Amazon's creation of an in-house delivery capability has also cut market growth and seems unlikely to be reversed.As far as the company's cost cuts are concerned, it expects the savings to barely offset the decline in revenue, with even this dependent on the next collective bargaining deal with the trade unions.Future pension provision will also have to be agreed, with some risk of a one-off contribution or higher ongoing costs, said Liberum.In addition, it said the uncertainty over Royal Mail's future regulation, which is currently being reviewed by OFCOM, presents asymmetric risk, with no change being the best scenario but a more onerous regime possible."Although the group trades at a discount to its European national postal operator peer group, we consider this discount to be warranted by the modest growth outlook and risks faced by Royal Mail." Marks & Spencer was given a 'buy' rating but its target price was lowered to 570p from 590p by Investec after the company reported its third quarter trading update.The retailer said while it enjoyed its best ever Christmas for food sales, general merchandise sales slumped 5% and like-for-like (LFL) sales by 5.8%, which analysts said implied in-store sales were down in high single digits.As a result, total group sales were entirely flat for the 13 week period to 26 December, having risen 1.4% in the first half of the year.The womenswear division's tribulations were blamed on unseasonal weather condition."With weak comps, 3Q16 was supposed to be the quarter when M&S' finally demonstrated general merchandise was back on track," said Investec analyst Kate Calvert."However, in keeping with others, the weather has spoilt the party, though self-help & a more flexible business model has limited the profit impact."M&S also announced that chief executive Mark Bolland will retire this year and hand the baton to well-regarded general merchandise chief Steve Rowe."He has significant experience across the whole business having also run the Food division and store operations historically and his appointment is likely to be well received in our view," Calvert said.Calvert added that the cut to the target price was based on peers de-rating of the stock to calendar year 2016 price to earnings ratio of 11.6.However, she said the de-rating "seems excessive given M&S is capable of delivering double digit TSR through a combination of profit growth driven by self-help & capital return programme". While China's stock market jitters spark a widespread equity sell-off, especially around emerging markets, Capital Economics remained convinced they will bounce back once these fears ease.Though he admits these fears may persist for a while, senior markets economist David Rees said the latest sell-off in equity markets in the emerging world was largely due to bad communication by Chinese officials, as many EM economies were showing some signs of improvement.Thursday saw the second 7% fall in China's stock indices in the week, again setting off the new circuit-breaker mechanism, again sparked by the People's Bank of China lowering its daily fix for the renminbi/dollar exchange rate by 0.5%, reinforcing fears of a competitive devaluation.Admitting he had been out on a limb for some time in predicting that EM equities will perform well this year, Rees stuck to his view for several reasons.First, that poor communication by the central bank was at fault rather than a deliberate devaluation."Last month's announcement of a new trade-weighted basket for the renminbi appeared to signal a shift to managing the currency against a basket of others, rather than solely against the dollar. But this was never explicitly announced, while the PBOC is only publishing the basket on a weekly basis."He suggested the large gap that has opened up between the onshore and offshore yuan implied the PBOC was still supporting the renminbi, an idea backed up by the record US$108bn decline to US$3.3tn in foreign exchange reserves last month that was also reported on Thursday.Rees' second argument was that equity markets in China are not a good barometer of the health of the economy, with the 7% daily falls in equity prices by no means evidence that the economy is contracting more sharply."Indeed, while there was a small decline in the December Caixin/Markit manufacturing PMI, one point that was glossed over on Monday is that at 48.2 it is still consistent with manufacturing growth of around 8% y/y. And other indicators have been more positive."As such, he still expects the Chinese economy to perform "reasonably well" this year and that other EM economies, outside of commodity producers such as Brazil and some in Africa, seem to have turned the corner and many, like India, ASEAN, Central Europe and even China, will benefit from lower commodity prices.
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21 Jun 2023 05:56

WH Smith, M&S and Argos 'named and shamed' over minimum wage failures

(Alliance News) - Retailers including WH Smith PLC, Marks & Spencer Group PLC and Argos Ltd are among firms who have been "named and shamed" by the government for breaking the minimum wage law.

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21 Jun 2023 00:01

UK fines WH Smith, M&S and others for not paying minimum wage

LONDON, June 21 (Reuters) - Britain has fined more than 200 companies, including top retailers WH Smith, Marks & Spencer and Argos, for failing to pay their lowest paid staff the minimum wage between 2017 and 2019.

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19 Jun 2023 14:31

Britain's M&S the latest supermarket to cut prices

M&S cuts prices of 70 products, holds prices of 150

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12 Jun 2023 11:57

Staffline shares drop despite confidence in future prospects

(Alliance News) - Staffline Group PLC on Monday hailed a strong performance so far this year, said it still enjoys "substantial" headroom and added that it remains confident in its medium to long-term prospects.

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8 Jun 2023 12:12

M&S agrees settlement with Swizzels in Percy Pig court case

(Alliance News) - Marks & Spencer Group PLC has agreed a settlement with British sweet-maker Swizzels Matlow Ltd after accusing it of copying its much-loved Percy Pigs.

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7 Jun 2023 09:42

LONDON BROKER RATINGS: Goldman cuts Croda to neutral; Davy likes Wise

(Alliance News) - The following London-listed shares received analyst recommendations Wednesday morning and Tuesday:

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2 Jun 2023 11:07

IN BRIEF: Marks & Spencers tenders GBP228.1 million loan notes

Marks & Spencers PLC - London-based food, clothing, home and bank services retailer - Says it has tendered GBP107.2 million of GBP300.0 million 3.750% notes that are due in 2026, and that it has tendered GBP120.9 million of GBP324.6 million 4.750% notes due in 2025. This follows the invitation made to holders of outstanding notes to tender their notes for purchase by the company for cash in an aggregate nominal amount of up to the 2025 notes and 2026 notes maximum acceptance amount. The offers were announced in May 2023, and were made on terms and subject to conditions contained in the tender offer memorandum. The company also announces that the 2025 and 2026 notes final acceptance amount is expected to be set at GBP219.4 million in aggregate nominal amounts of notes.

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30 May 2023 09:14

LONDON BROKER RATINGS: RBC cuts Dr Martens to 'sector perform'

(Alliance News) - The following London-listed shares received analyst recommendations Tuesday morning and Monday:

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26 May 2023 09:41

LONDON BROKER RATINGS: RBC cuts Halfords; Berenberg likes Sabre

(Alliance News) - The following London-listed shares received analyst recommendations Friday morning and Thursday:

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26 May 2023 08:54

UK shoppers boost spending despite inflation's bite

Retail sales in April +0.5% m/m vs Reuters poll +0.3%

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25 May 2023 09:23

LONDON BROKER RATINGS: Numis starts Tristel with 'add'

(Alliance News) - The following London-listed shares received analyst recommendations Thursday morning:

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25 May 2023 07:52

LONDON BRIEFING: Germany enters recession; UK energy price cap lowered

(Alliance News) - Stocks in London were called to open lower on Thursday, amid the continued political scrap over raising the US government debt limit and after news that Germany has entered a technical recession.

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24 May 2023 17:11

London stocks fall sharply on rate hike fears

Aviva tumbles on lower net flows

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24 May 2023 16:57

LONDON MARKET CLOSE: Stocks sold off amid US debt limit angst

(Alliance News) - US debt ceiling concerns battered European equities on Wednesday, leading to broad-based stock price declines, as investors fret over what a default would mean for global markets.

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24 May 2023 14:42

ShoreCap sees 'attractive' entry point in Marks & Spencer

(Sharecast News) - Analysts at ShoreCap told clients they believed they saw a "very attractive entry point" into Marks & Spencer's shares, given the increasing possibility of a rating expansion.

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