Proactive Investors -
- FTSE 100 weakens, down 26 points at 7,674
- HSBC, BP (LON:BP), Weir higher after earnings, Fresnillo (LON:FRES) falls
- House prices remain weak but shop price inflation decelerates
M&S recovery not a false dawn - Barclays
Marks and Spencer Group PLC (LON:MKS) has laid the foundations for significant top-line growth and margin expansion, according to analysts at Barclays.
Although M&S has emerged from the pandemic period with strong market share momentum, and significantly reduced debt, Barclays (LON:BARC) says conversations with many investors suggest widespread scepticism as to whether this is a real change or just another ‘false dawn’.
It accepts this is not an unreasonable worry given that the the story of M&S over the last 25 years has been characterised by revivals that soon peter out.
But it believes M&S has effected a huge amount of fundamental change over recent years.
"Almost every critical aspect of the company - from its real-estate strategy to its online business and its logistics - is in the process of being thoroughly updated and made fit for the future," Barclays said.
"We still see significant potential upside and increase our price target to 260p (from 220p), implying upside of 26%," the broker added.
Shares in M&S held firm against the weaker market, up 1%, at 208.36p
Here’s a recap of the top risers and fallers on market today
Shares in the wellness group Cellular Goods PLC (LON:CBX) rose 7% in early trade following the announcement that it will begin offering products from its 'Look Better' skincare range in France and Germany, starting this autumn.
The expansion is aimed at tapping into the significant market potential in these two countries, which are among the largest cannabinoid markets in the EU.
Shares in Man Group PLC (LON:EMG) fell nearly 7% on Tuesday morning as the investment management firm reported a fall in half-year profits and revenue due to a slump in performance fees.
Shares in Fresnillo PLC (LON:FRES), the world's largest silver miner, tumbled nearly 4% following a significant drop in interim profits for 2023.
The decline was primarily driven by cost inflation and the sharp appreciation of the Mexican peso.
United Oil & Gas PLC (LON:UOGU) dropped 10% as it cautioned that conditions for its sale of the Maria licence in the North Sea to Quattro Energy had not been met.
The longstop date for the deal was the end of July and discussions, described as advanced, are underway about a further possible extension.