The share price of the FTSE 100-listed Marks and Spencer PLC (GB:MKS) soared by 115% in 2023 on the back of the company’s successful turnaround efforts and resilient consumer demand. Moving to 2024, analysts remain optimistic about the company’s performance but maintain a cautious outlook on share price growth, as the positives seem already priced into the stock.
Marks and Spencer is a British retailer with a broad customer base, providing a diverse selection of products, including clothing, food, and household goods.
Analysts’ Opinions About Marks and Spencer
After Marks and Spencer’s first-half results for FY24, most analysts confirmed their Buy rating on the stock in November, predicting a modest upside potential in the price.
Analysts were impressed by a significant increase of 75% in first-half profits. Also, the company reinstated its dividend, marking its first payout since the pandemic. The company attributed its remarkable performance to a 14.7% upswing in food sales and a 5.7% growth in clothing and home sales.
Reacting to the company’s performance, Zoe Gillespie, an investment manager at RBC Brewin Dolphin, said the company has improved its position significantly compared to just a few years ago, driven by a series of self-help measures. She added that if the company maintains its “current momentum,” there could still be potential for further growth.
Hargreaves Lansdown analyst Aarin Chiekrie mentioned the reinstatement of dividends as the highlight of the year. He believes it restores investors’ confidence in the business outlook.
However, in terms of share price growth, analysts are adopting a cautious stance as the stock is already trading at high levels. Two days ago, Jefferies analyst Frederick Wild confirmed his Hold rating on the stock, forecasting a possible downside of around 34%.
Prior to that, analyst Georgina Johanan from J.P.Morgan confirmed a Buy rating on the stock with a 5% forecasted downside.
Is Marks and Spencer a Good Stock to Buy?
On TipRanks, MKS stock has received a Moderate Buy consensus among analysts, including four Buy and four Hold recommendations. The MKS share price forecast is 270p, which is 1.17% below the current trading level.
