Updated: Fri, 21st Apr. 09:55:54
(ShareCast News) - Retailer Marks & Spencer got a boost as Barclays initiated coverage of the stock at 'overweight' with a 410p price target, which implies 14% potential upside.
The bank acknowledged that like the rest of the UK general retail sector, M&S currently faces some significant headwinds given weakening consumer sentiment and FX pressures on input prices, especially in the demand-elastic Clothing & Home segment.
However, it highlighted the fact that M&S Food has a good track record over many years, noting that the company is becoming increasingly food-focused over time. In addition, Barclays said it sees plenty of opportunity to add more stores, 200 in the next two years on a base of around 600.
It also pointed out that recent stores have been performing well with sales in new stores 17% ahead of plan at the 1H16/17 stage.
Barclays said that in Clothing & Home, the turnaround plan is likely to offset headwinds.
"M&S cannot avoid the industry headwinds although its older and wealthier customer base might give it some protection.
"However, the new CEO has outlined a comprehensive and sensible plan to improve its store estate and its product offering. Initial results appear encouraging with M&S delivering its first full price market share gains in over five years."
At 1300 BST, the shares were up 1.7% to 359.60p.
|EPIC CODE||COMPANY NAME||TRADE|
|MKS||Marks & Spencer Group||TRADE|
Disclaimer: This news feed is provided by Digital Look Ltd. BullBearings Ltd do not necessarily share the views expressed within the stories. The stories are for general information purposes only and not a solicitation or personal recommendation to deal. BullBearings Ltd accepts no liability or responsibility for any of the content contained in the information provided by Digital Look Ltd.
They say “breaking up is hard to do” but in financial market break-ups spinoffs can be very profitable and give companies a new lease of life.
A spinoff is the creation of an independent company or in some cases more than one company through the sale or distribution of new shares of an existing listed company to shareholders holding the parent company at a certain date.
Three years ago I came up with the concept for a investment-focused podcast for the ShareTalk website I work on, called Conkers' Corner after my Twitter handle of @conkers3, and five months ago the first recording was made. Below are some of the lessons I have learned or have been reinforced during these years.
The concept of Conkers' Corner is very simple yet extremely educational and beneficial for all: the participants in the podcasts and interviews since I started in May 2016 have included shrewd investors/traders, ISA millionaires, high net worth individuals, business leaders, CEOs, highly respected fund managers and investment writers.
There’s a great debate in the financial industry about which type of analysis produces the best results for traders - is it better to be a technical trader or to rely on the fundamentals?
Is there a common ground between the two? We’ve all heard the phrase All roads lead to Rome. In this article we’ll explore whether this applies to the financial markets.
Graham Spooner, investment research analyst at the Share Centre, picks three top shares among the most popular purchases by equities clients in the last seven days.