Table of Contents
Marks & Spencer shares hit their highest level in more than seven years after analysts said its food division had hit a “sweet spot”.
The High Street stalwart rose 2.9 per cent, or 10.2p, to 361.4p, hitting a level not seen since June 2017, after analysts at RBC and Barclays raised their target prices for the stock to 400p.
M&S received praise earlier this month after launching a well-received autumn/winter fashion range.
But the latest research by city experts has put the spotlight on the city’s food and drink offering.
Marks & Spencer rose 2.9%, hitting a level not seen since June 2017, after analysts at RBC and Barclays raised their target prices for the stock to 400p.
Barclays said the retailer’s food business has increased its market share.
And for RBC analyst Richard Chamberlain, the division is in the “sweet spot” and in a strong position to develop its premium offering as rivals focus on keeping prices low.
“The M&S share price has performed well so far this year but we see further upside potential driven by the excellent performance of food, full-price clothing sales and M&S’s strong cash generation,” he said.
The stock has gained nearly a third this year and is up 62 percent since rejoining the blue-chip index nearly a year ago.
Yesterday was a quieter day for the broader market, with the FTSE 100 up 0.06 per cent, or 5.35 points, to 8,278.44 and the FTSE 250 adding 0.2 per cent, or 34.22 points, to 20,929.59.
Another major FTSE player, BP, was in the spotlight as a private equity firm invested in one of its businesses that owns a part of the Trans-Adriatic natural gas pipeline.
Stock Watch – TT Electronics
Shares in TT Electronics fell to a 10-year low after issuing a profit warning.
The engineer, whose clients include defence giant BAE Systems, expects group profits for 2024 to be in the range of £37m to £42m due to higher production costs and order delays in North America.
That would be less than the range of £54 million to £56.8 million expected by analysts.
Shares fell 31.6 percent, or 44.8 pence, to 97.2 pence, the lowest level since 2014.
Apollo Global Management has acquired a non-controlling interest in the oil major’s BP Pipelines TAP, which has a 20 percent stake in the project.
BP also announced plans to sell its US onshore wind business. Shares in the energy giant rose 0.5 percent, or 1.95 pence, to 406.15 pence.
Elsewhere in the sector, energy firm Union Jack has secured planning approval to expand development of its Wressle oilfield in North Lincolnshire. Shares rose 4.8 per cent, or 0.75p, to 16.25p.
Gambling software group Playtech has reached a revised agreement with Mexican gambling operator Caliente Interactive.
The deal will see the London-listed company take a 30.8 per cent stake in Cali Interactive, the new holding company for the Caliplay joint venture, and receive an additional £106m over four years.
In a separate update, Playtech said it expects full-year profits to beat market forecasts due to a strong performance within its business-to-business division. Shares rose 15.1 percent, or 99 pence, to 753 pence.
Video game developer Keywords reported a strong first half as revenue rose 7 percent to £333 million ($440 million) in the six months to the end of June.
The group expects its £2.1 billion takeover by Swedish private equity firm EQT to be completed next month. Shares rose 0.1 percent, or 2 pence, to 2,428 pence.
Fund manager JTC is to buy a Citigroup-owned company for £61m ($80m).
The company said the deal to buy Citi Trust, which is expected to be completed in the first half of next year, will make the United States its biggest market. Shares rose 3.9 percent, or 42 pence, to 1,134 pence.
DIY INVESTMENT PLATFORMS
AJ Bell
AJ Bell
Easy investment and ready-to-use portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free investment ideas and fund trading
interactive investor
interactive investor
Flat rate investing from £4.99 per month
Saxo
Saxo
Get £200 back in trading commissions
Trade 212
Trade 212
Free treatment and no commissions per account
Affiliate links: If you purchase a product This is Money may earn a commission. These offers are chosen by our editorial team as we believe they are worth highlighting. This does not affect our editorial independence.