Marks and Spencer Group PLC (LSE:MKS) is focused on the future, said Deutsche Bank as it reiterated its 'buy' rating on the retailer following a recent capital markets day.
The bank, which maintained a 435p target price, cited the group's long-term strategy and attractive valuation.
Feedback from the capital markets day was mixed, with analysts describing the session as “interesting yet familiar” and focused mainly on executing the existing 2022 strategy through to 2028.
Management reaffirmed long-term targets, including doubling food and online clothing sales and achieving 4% and 10% EBIT margins in Food and Clothing respectively.
Analysts highlighted the retailer’s ability to continue structural improvements despite recent challenges, including the cyber attack that laid the chain low in the spring.
The bank said its investment case is supported by a 12x calendar 2026 price-to-earnings valuation, rather than near-term expectations for earnings upgrades, with strong UK sales largely reflected in expectations.
Further upside to 2027 profit before tax forecasts is likely to depend on progress in areas such as the international business and profitability at the Ocado Retail joint venture.