The FTSE 100-listed Marks and Spencer PLC (GB:MKS) stock gained 1.32% in yesterday’s trading, marking a positive start to 2024 following a stellar rally in 2023. Shares moved higher after analyst Warwick Okines from Exane BNP Paribas upgraded his rating for Marks and Spencer from Hold to Buy, predicting a 16% upside.
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MKS stock gained around 112% in 2023, securing the second spot on the FTSE 100’s top performers list for the year. The stock is currently trading at its highest level in the last five years, thanks to the company’s turnaround efforts, higher food sales, and initiatives to upgrade its shops and fashion offerings.
Marks & Spencer is a well-known British retailer offering a diverse range of products that include clothing, food, and household goods.
Exane BNP Paribas is Bullish on Marks and Spencer
BNP Paribas remain bullish on the overall retail sector in 2024. Okines anticipates that Marks & Spencer will emerge as a ‘Christmas winner’ when the retail companies release their trading updates. MKS is scheduled to release its Christmas trading update on January 11, 2024.
In 2024, the company will also resume its dividends after a gap of four years with a payment of 1p per share on January 12. This dividend marks another significant milestone for the company, especially following its return to the FTSE 100 index in 2023.
Moving forward, the company aspires to become a “global brand,” as indicated by its chairman Archie Norman. As part of this move, the company plans further international expansion, eyeing a broader global presence. This strategy is expected to follow the ongoing turnaround phase, which is already showing favourable results.
Is Marks and Spencer a Good Stock to Buy?
According to TipRanks consensus, MKS stock has received a Moderate Buy rating based on five Buy and four Hold recommendations. The average MKS share price forecast is 275.56p, which is almost similar to the current trading level.
