Retailer Marks & Spencer Group PLC should provide a strong third quarter update on Thursday, with potential full year upgrades a result, say Jefferies analysts.
Predicting third quarter food sales to be up by 7%, Jefferies suggested “early days” data shows “M&S is starting to show encouraging staying power against a volatile backdrop”.
Jefferies now predicts M&S to see full year pre-tax profit around £428mln, up from roughly £410mln originally.
M&S has also exceeded Jefferies’share price target of 125p, sitting at 140p currently, while analysts reiterated a ‘hold’ rating for the retailer.
Analysts suggested M&S’ historic struggles during tough economic conditions were the reasoning behind its rating and target share price.
November saw M&S warn of tougher market conditions in the new financial year, with the higher cost of living continuing to meet higher operating expenses for businesses.
Despite suggesting “all parts of the retail sector will be affected,” the group remained positive.
“We are very confident the business will emerge with a strengthened market position and prospects for growth,” it said, suggesting its remodelling gave scope for “greater resilience”.