Retailers with good momentum still look capable of surprising on the earnings front says RBC, with JD Sports Fashion PLC (LSE:JD.) and Marks and Spencer Group PLC (LSE:MKS) two of the Canadian bank’s favourites.
Sentiment about M&S is buoyant, notes the bank, Last week’s digital presentation underlined its confidence while the sportswear trend. continues to boost JD Sports.
“We favour attractively priced retailers, with scope for positive earnings revisions and for sentiment to improve, such as JD Sports at a CY24E P/E of 11x and Marks & Spencer at 13.5x CY24E,” said the bank.
Currys PLC (LSE:CURY) is another store in favour, with last week’s results prompting a share price target upgrade to 100p and a 1% lift in earnings forecast underpinned by B2B and ID Mobile.
Associated British Foods PLC (LSE:ABF) didn’t leave such a good impression with RBC cutting earnings forecasts for this year and next by 3% and 8% respectively. The target price also moves down to 2,600p from 2,750p.