No word mincing from Investec’s Kate Calvert about Marks & Spencer (LON:MKS) chief executive Steve Rowe’s recovery plan.
“The strategy to reshape UK space/International is effectively a 5 year restructuring story with poor near term profit and cash visibility, implemented against a consumer backdrop which looks set to deteriorate.”
Any benefit derived on the plan will go on steadying the ship, while restructuring costs effectively mean additional cash returns are off the agenda.
Calvert's target price is cut to 290p from 315p and the recommendation is now sell as shareholder returns are to turn negative.
The shares trade on a 7% discount to their 10 year average forward PE of 12.4, but the discount should be wider, she reckons
Shares fell 1% to 327.4p.