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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: 302.00
Bid: 302.50
Ask: 302.70
Change: -1.90 (-0.63%)
Spread: 0.20 (0.066%)
Open: 303.00
High: 304.10
Low: 300.90
Prev. Close: 303.90
MKS Live PriceLast checked at -

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M&S shares boosted by Credit Suisse upgrade

Fri, 08th Jul 2016 12:19

(ShareCast News) - Marks & Spencer shares recovered on Friday from the previous day's drop after Credit Suisse upgraded the retailer to 'neutral' from 'underperform'.The company on Thursday reported a sharp 8.9% fall in sales at the clothing and home division in the first quarter, sending shares into the red. Marks' food arm continued to outperform the wider grocery market and keep the group on a relatively even keel, rising 4.0% although LFL sales were down 0.9%, of which 0.5% was due to Easter timing. New chief executive Steve Rowe has said it would slash clothing prices and improve the quality to boost the struggling general merchandise (GM) division but warned that it could impact profits in the short term."While we remain cautious on the positioning of M&S's GM business and want to see much improved execution and restructuring, the shares have fallen 35% year-to-date and 50% since last May, so are beginning to discount much of this," Credit Suisse.The broker said the first quarter was worse than it had feared and cut its full year forecasts on gross margins at GM from a 50 basis point increase to flat. Credit Suisse also cut its earnings per share forecasts by 1% for this year and by 3% for next year, 9% and 17% below consensus, respectively.The target price was lowered to 320p from 340p."However, we are less bearish on apparel demand in the second half and are broadly supportive of the strategy for GM, so we have left our GM like-for-like at -4%. Food continues to trade well and FX is helpful for International profit."Shares rose 6.32% to 317.90p at 1246 BST.
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