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Marks and Spencer Group Plc (LON:) is no longer analysts’ least favorite British retailer.
RBC’s move to outperform on Tuesday — the third broker upgrade in less than a week — means that based on a score of consensus recommendations, M&S has pulled clear of Sports Direct (LON:) International Plc, with whom it had shared the joint lowest-ranking in the General Retailers index. The consensus — a proxy for the ratio of buy, hold and sell ratings — is now 2.58, the highest since July 2018.
RBC’s bullishness stems from M&S’s “price investment in high volume lines, less confusing promotional activity and stronger new innovation pipeline,” analyst Richard Chamberlain wrote in a note.
His move follows recent upgrades by Goldman Sachs (NYSE:), which cited improving customer opinions on the company’s womenswear range, and JPMorgan (NYSE:). Plenty remain skeptical, however, with a downgrade by Morningstar on Monday meaning the London-based clothing and food retailer still only has four buy ratings among 24 analysts.
After a year in which M&S fell out of the and the share price is down 13% even after a recent rally, the upgrades at least provide investors with some positive signs moving into 2020.
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