Brokers note - Next
Singer Capital Markets has increased its target price on Marks & Spencer following its interim update that came in at around 4% ahead of expectations.
The broker has upped its target by 14% from 320p to 365p that would suggest a PE of 12.5x earnings for 2010. Singer says there are now positive sales assumptions in H2 for both food and non-food and there is also the potential for further improvement on the broker’s forecasted numbers.
Singer has also pushed up its pre-tax profit forecasts for 2010 and 2011 by the equivalent of an 8.4% and 10.6% EPS upgrade respectively. It does, however, question how much further the recovery in consumer spending can push up its forecasts on M&S.
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