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ANALYST VIEWS: ARE THE M&S RESULTS SATISFACTORY?

MATTHEW MCEACHRAN | SINGER CAPITAL MARKETS

“Although current ranges are winning back customers, new chief executive Bolland will be under pressure to improve investor sentiment. This might take time but, after a period of sector underperformance, the shares appear to be slightly oversold. Bolland will need to draw on all his management skills.”


KATE CALVERT | SHORE CAPITAL

“Management has commented that M&S has had a satisfactory start to the first quarter which implies that its next trading update will be reassuring and that M&S is benefiting from more robust clothing sales along with others in the industry. However, the team remains cautious on the year ahead. M&S should trade at a ten per cent discount.”

JEAN ROCHE | PANMURE GORDON

“Following M&S beating preliminary market results, we retain our ‘buy’ rating. We continue to think that the shares look oversold, having underperformed the general retail sector index by around seven per cent year to date and offering a 4.7 per cent
dividend yield, on our estimates.”