Marks and Spencer, Carlsberg, Young & Co Brewery: Best of the Brokers for 13 November 2015

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RBC Capital Markets liked what they saw at Marks & Spencer’s summer season 2016 clothing preview so much, they made the retailer RBC’s “top pick” with a target price of 700p. The broker said he was encouraged M&S was “taking steps to improve the consistency and availability of its clothing”, which is where the business has the most opportunity to grow. Specifically, the broker expects further positive earnings upgrades driven by buying gains, improved online execution and profitability.

 

Canaccord Genuity raised its target price for Danish brewer Carlsberg to 483 krone from 460 krone, but maintains “difficulties in the business persist, despite solid third- quarter results,” so reiterated its sell rating. Carlsberg’s “significant Russian exposure” makes it more vulnerable to volatility than its European counterparts, the broker argued, and it expects market conditions to deteriorate.

 

It's a very different story for pub owner Young’s, which has had its target price upgraded to 1,380p from 1,330p and its “buy” rating confirmed by Panmure Gordon. The broker said: “Young’s remains well placed to continue its robust trading” with “excellent food and drink, strong brands,” and was “well invested in pub estate” mainly in London and the south east. The company reported sales were up 5.5. per cent in its interim results, and the broker believes it is set for long-term growth.