Brokers note - Morrisons and Marks & Spencer
Bernstein Research regards the move of Morrisons chief executive to the same role at Marks & Spencer as a near-term blow to the Yorkshire-based supermarket and an opportunity for change at M&S.
The broker says it had been concerned that an internal appointment at M&S would mean ‘more of the same’ whereas Bolland will potentially bring important shareholder value from correcting the current course of action at the company. Bernstein retains its ‘Market Perform’ recommendation on M&S and keeps its target price of 410p unchanged.
The broker thinks the departure will also bring opportunities for Morrisons as it may facilitate the company addressing a series of broader strategic questions including non-food, c-stores and the internet. However, it regards Bolland’s move as a near-term blow to the grocer. Bernstein maintains its ‘Market Perform’ rating on Morrisons and target price unchanged at 300p.
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