In news on UK stocks, Marks and Spencer PLC (GB:MKS) shares gained over 2% after analyst Richard Chamberlain from RBC upgraded his rating to Buy from Hold. The analyst also increased his price target from 285p to 300p, predicting a 21% upside in the shares. Year-to-date, MKS stock has declined by 10%. However, Chamberlain believes this is primarily attributed to macro factors and contends that the company’s fundamentals remain robust.
In 2023, Marks and Spencer shares gained around 100%, securing a place among the top performers on the FTSE 100 index.
Marks and Spencer is a British retailer, offering a diverse range of products that include clothing, food, and household goods.
Here’s Why RBC is Bullish on Marks and Spencer
RBC stated that Marks and Spencer’s performance in its food division is impressive, as the brand is perceived as a value-for-money option. Similarly, the company’s clothing segment has benefitted from its digital presence, the inclusion of third-party brands, and an expanded product range.
Chamberlain also thinks that MKS has a fairly established position in the UK market but still carries the potential for decent growth. The analyst also highlighted the company’s progressive cash return policy, which makes it attractive for long-term investors. In November, during its first-half results for FY24, the company announced its first interim dividend of 1p per share since the onset of the COVID-19 pandemic.
Is Marks and Spencer a Good Stock to Buy?
According to TipRanks consensus, MKS stock has received a Strong Buy rating based on six Buys and one Hold recommendation. The average MKS share price forecast is 300p, which is 21% higher than the current trading level.
