Marks and Spencer Group PLC (LSE:MKS) should go into next week’s AGM on top form, according to analysts at Deutsche Bank.
“Management track record is building. The blocks for the market outperformance M&S is delivering now were put in place from 2018.
“This level of structural change does not only deliver a short-term sales outperformance and accordingly we believe there is still material upside left for investors.
“We forecast c.20% EPS growth in FY25e and the stock is currently trading on c.10x Cal 2025 PE which is unwarranted given the structural changes.
“External data points support the investment case and we believe the recent share price underperformance to be unjustified and likely reflecting short-term weather concerns.
“We reiterate our 'Buy' recommendation and 350p price target reflecting a more disciplined approach to full price sell through, product design and capital investment.”
Shares were down 1% at 291.2p.