Update shared on 29 Nov 2025
Marks and Spencer Group's analyst price targets have increased modestly, with recent adjustments reflecting both optimism about the company's improved revenue growth outlook and concerns over rising execution risks. As a result, most targets now range between 400 GBp and 440 GBp.
Analyst Commentary
Recent research updates on Marks and Spencer Group have highlighted a mix of optimism and caution among market participants. While several analysts note the company’s improved outlook, others remain mindful of risks that could impact performance going forward. The commentary can be grouped into bullish and bearish takeaways regarding the company's valuation, growth prospects, and execution risks.
Bullish Takeaways
- Bullish analysts have increased price targets following signs of steady revenue growth and business momentum.
- The stock’s recent selloff is viewed by some as an attractive entry point and may offer potential valuation upside if the company delivers on its strategic initiatives.
- Upgrades to "Buy" recommend the shares based on positive internal momentum and prospects for continued operational improvement.
- The higher price targets set by some analysts reflect growing confidence in the company’s ability to capitalize on current market conditions.
Bearish Takeaways
- Bearish analysts caution that execution risk is elevated, especially in the wake of the recent cyber disruption affecting company operations.
- Some price target increases have been accompanied by ratings downgrades, which signals concerns that valuation now better reflects upside potential.
- There are ongoing worries that improved growth expectations may not fully offset the risks tied to operational execution and market volatility.
- Analysts emphasize that despite improved top-line forecasts, the company may face headwinds in sustaining its current growth trajectory.
What's in the News
- Announced RE:Spark, a new supply chain decarbonization program in partnership with Schneider Electric. This initiative is aimed at accelerating renewable electricity adoption across M&S's global supply chain as part of their Plan A target for net zero emissions by 2040 (Key Developments).
- Launched a digital hub using Schneider Electric's Zeigo Hub. The platform will help suppliers track emissions and access resources for carbon reduction (Key Developments).
- Declared an interim dividend of 1.2 pence per share, payable on 9 January 2026 to shareholders on the register as of 28 November 2025 (Key Developments).
- Hosted an Analyst/Investor Day to engage with the financial community (Key Developments).
Valuation Changes
- Discount Rate: edged up slightly from 7.89% to 7.89%, reflecting a minor increase in perceived risk.
- Revenue Growth: increased substantially from 2.5% to 6.25%, which highlights upgraded expectations for future top-line expansion.
- Net Profit Margin: declined modestly from 4.44% to 4.02%, which suggests slightly lower anticipated profitability.
- Future P/E: dipped marginally from 15.13x to 15.05x, which indicates a virtually unchanged valuation multiple on forward earnings.
Disclaimer
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