- Marks & Spencer Group
- 03 May 2024 17:22:58
Source: Sharecast
"Whilst we continue to view M&S's transformation positively, we also continue to expect the demand environment to deteriorate across 2023 and into 2024," the bank said.
"With a higher tax assumption driving a 5p TP target trim to 170p on 10x FYMar25E earnings per share and the shares up more than 10% since our March upgrade, we move to neutral with 4% upside/7% ETR."
Elsewhere, RBC Capital Markets initiated coverage of Advanced Medical Solutions with a ‘sector perform’ rating and 285p price target, as it sees a clear path to a re-rating but remains on the sidelines until then.
It said AMS is a well-run, cash generative business that is set to bolster its already impressive positioning in defensive end markets with a range of recent and upcoming launches.
"However, the current share price is already full, in our view, and our £2.85/share price target has insufficient implied upside for us to recommend buying the shares at this stage."
RBC said its sees "meaningful" upside potential from surgical sealant Seal-G, and may revisit its rating on positive clinical and commercial developments.
AMS develops and manufactures tissue-healing technology.
Analysts at Jefferies hiked their target price for shares of Mitchells & Butlers in light of the "robust" momentum in the pub owner's sales and given the prospect that cost pressures would abate.
Their estimates for its earnings before interest, taxes, depreciation and amortisation in 2023 and 2024 rose by 2% and 13%, respectively.
Earnings per share for those two years were seen coming in 10% and 55% higher.
All told, they boosted their target price from 170.0p to 270.0p and upgraded their recommendation from 'hold' to 'buy'.
They also highlighted the company's well-invested and well-located 80% freehold food-oriented pub estate.
All of those factors, they said, should help M&B win "material" market share even as other smaller operators struggle.
