Marks and Spencer Group PLC (LSE:MKS) and Next PLC (LSE:NXT) secured a bullish endorsement from Citi on Tuesday, as analysts maintained a top rating for the grocer and upgraded its retail rival.
Shares in Marks and Spencer traded at 392p, up 1.90%, while Next reached 15,655p, up 2.49%, as the bank affirmed its 'buy' stance across the two prominent businesses.
At the heart of the update is a confident assessment of structural tailwinds across the broader consumer landscape, with both food and fashion divisions poised for further upside.
That optimism is heavily anchored in the thriving food operations of Marks and Spencer, which external data suggests will post double-digit sales growth into the 2026 financial year.
Those robust grocery figures, combined with an expanding margin opportunity across Marks and Spencer clothing, leave analysts thoroughly convinced by the high street brand's overarching turnaround.
To cushion fashion margins further, Marks and Spencer's Lichfield distribution centre is expected to unlock substantial cost efficiencies and bankroll additional group profitability from the 2029 financial year.
In the same note, Citi highlighted rapid international growth at Next, upgrading forward adjusted pre-tax profit estimates by 3% for the fashion giant's 2027 financial year.
This foreign expansion momentum means Next now commands a higher valuation, steadily closing the total shareholder return gap against best-in-class European rival Inditex.
Looming large over these upgraded forecasts is the operational execution at Lichfield, leaving investors watching to see if Marks and Spencer delivers that promised 2029 margin windfall.
