Marks & Spencer initiated with a Buy at Deutsche Bank

Deutsche Bank initiated coverage of Marks & Spencer with a Buy rating and 310 GBp price target. The analyst’s preference in U.K. retail is for ASOS, B&M and M&S, saying all have “specific and interesting” investment cases. Christmas trading is likely to be robust, but there is a risk this represents the last hurrah of post-pandemic spending recovery, the analyst tells investors in a research note. The firm says the U.K. retailers are generally in good shape with margins largely expected to recover in 2024 and balance sheets in good shape “but growth will likely be anemic.”