Marks and Spencer Group PLC (LSE:MKS) is unlikely to see its share price double like it did in 2023, but instead should see more “normalised” growth, according to house broker Shore Capital.
Since January 2023, the supermarket retailer has seen its shares jump by over 100%, returning from up from its all-time lows in both 2020 and 2022.
“We do not anticipate a further doubling in the next year in the absence of a bid and so with a re-rating in tow, more normalised share price appreciation is anticipated, related more to ongoing earnings momentum with maybe some modest rating expansion,” Shore Capital said.
Experts at the brokerage firm believe M&S can find growth momentum through rebuilding on lost market share in its international stores, continuing carefully with its new store investment and providing customers with value for their money.
The FTSE 100 company said last week it would be investing £30 million into its Scottish operations, including the doubling of size at its Aberdeen flagship store and the opening of new sites.
These openings are believed to be part of the group’s plan to shift its £500 million real estate portfolio to 180 stores from 250 while having 100 new food halls – two of which have been targeted for openings through the Scottish investment.
M&S’s food business is also expected to grow as management aims to lift its grocery market share to 1% by March 2028.
Shore Capital said it wouldn’t be surprised if the supermarket was able to overtake Waitrose in its UK market position in 2024.
Shares in M&S are down almost 1% on Tuesday at 249p.