Marks and Spencer Group PLC (LSE:MKS) thoroughly surpassed market expectations with Wednesday's first-half results, with broker reactions responding in kind.
Peel Hunt highlighted M&S’ "material beat” at the profit-before-tax level, noting that both food and merchandise performed strongly.
“The shares are in the middle of their trading range but will likely enjoy these numbers,” said Peel Hunt.
Analysts at the brokerage maintained a 'buy' rating on the stock with a 425p price target.
Deutsche Bank called the results “another strong performance and chunky earnings beat”.
Cost headwinds were evident, said Deutsche, but these were offset by a stronger-than-expected sales performance.
“In our view, the sales momentum seen in the period will not fade quickly and this would support a strong second half), but we see scope for management to increase the level of investment to support longer-term growth,” said Deutsche.
All in all, M&S “remains a great turnaround story and we see the outperformance continuing”, analysts said.
Shares ran up 4.3% to 399.9p following publication of the results.