Peel Hunt upgrades M&S to 'add'

Peel Hunt upgraded Marks & Spencer to ‘add’ from ‘hold’ on Friday and lifted the price target to 190p from 150p following the retailer’s capital markets day.

Peel said the CMD was "highly entertaining and informative, a complete opposite to the one two years ago, which bored us to tears and showed no new strategic or tactical thinking".

"This was an authoritative, confident showing from M&S, where weaknesses were owned up to and strengths demonstrated."

Peel said value for money in both foot and clothing/home is better than it has been for years, and the Sparks card is starting to add value in CRM terms.

"Availability should improve, which is absolutely fundamental in customers' eyes," Peel said. "There is loads more for M&S to do and the waters for all retailers are choppy given the supply chain issues, but we think it is worth adding on red days."