Broker expects M&S shares to hit highest level since 2015

Broker Peel Hunt has upgraded its expectations for Marks & Spencer shares, with analysts backing the all-food retailer’s ambitious expansion plans.

M&S, which will report to investors next week on its first-half performance, has become Britain’s fastest-growing supermarket under the leadership of boss Stuart Manchin.

Machin has helped attract shoppers despite the tough consumer backdrop, as M&S has invested in larger food halls and launched new products.

Has helped drive m&s shares almost 40 percent more since the beginning of 2024. They have added more than 75 percent in the last 12 months.

Peel Hunt on Friday raised the price target on its M&S shares from 360p to 425p, 12.7 per cent above its current level of 377.1p at mid-morning.

This follows another vote of confidence from analysts at UBS, which in September raised the price target on its M&S shares to 435p, higher than at any time since December 2015.

M&S opened four exclusive food stores in the first half of the financial year, with plans to open five more in the second half and 10 more next year.

It hopes to increase its food-only offering from 325 to 400 locations nationwide.

Peel Hunt analysts said a recent trip to M&S’s new Friern Barnet store – an 18,000 sq ft site that previously housed a Furniture Village – showed the value of the retailer’s recent investments.

“The math clearly works given the immediate sales densities,” they added.

‘M&S isn’t going crazy with its opening programme, but stores like Friern Barnet show the powerful model M&S now has for new or refurbished stores.

‘November 6 interims should show a good, if not great, first half, but current trading is probably decent, judging by the weather. Improvement is possible and, as the consumer begins to gain confidence, the risk profile has changed.’