Last checked at (Sharecast News) - Ocado surged to the top of the FTSE 100 on Friday as Deutsche Bank hinted at a possible buyout by Marks & Spencer.
In a research note on M&S, in which Deutsche lifted its price target on the buy-rated shares to 265p from 195p, it said: "Cash flow is no longer being squandered on an unsustainable dividend but saved to recover the investment grade credit rating that may be required to buy out Ocado."
M&S and Ocado became joint owners of Ocado Retail in August 2019. Marks paid Ocado £750m for a 50% share of the JV, which began trading in September 2020, when Ocado's partnership with Waitrose ran out.
At 0910 GMT, Ocado shares were up 5.6% at 1,874.50p.
Neil Wilson, chief market analyst at Markets.com, said: "It could happen, seems like a natural evolution to ultimately split the two businesses once the international deals actually start delivering some free cash."
1 Mar 2024 11:35
M&S wins court battle over Oxford St store demolition
(Sharecast News) - Marks & Spencer has come a step closer to demolish its main store on London's Oxford Street after the High Court ruled that a decision by government minister Michael Gove to block the plan was unlawful.
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