Marks & Spencer Share Price ‘Wholly Mispriced at This Time,’ Says Analyst

Marks & Spencer’s (LON: MKS) shares may be significantly undervalued despite continued operational progress, according to Shore Capital, which met with the retailer’s management following what it described as a satisfactory Christmas trading period.

Analyst Clive Black said in a note that the meeting reinforced confidence in short-term earnings delivery and the retailer’s multi-year growth strategy.

Shore Capital, which also acts in an advisory capacity to Marks & Spencer, highlighted expansion in food, momentum in online fashion and efforts to make international and online grocery operations more profitable.

It said these initiatives support an investment case “where sequential earnings growth should emerge.”

Analysts noted that management “seemed in good shape as 2026 starts” and noted improving customer sentiment, particularly online, with new clothing ranges “striking a real chord with shoppers.”

Secondary data is also said to suggest M&S has entered 2026 in “sound form” with further gains in food market share.

Shore Capital reiterated its long-term view that M&S has the capability to deliver 45–50p of EPS, adding that supply-chain modernisation underpins potential margin improvement in fashion. The firm also pointed to a stronger store pipeline and ongoing real estate development, noting that “new stores are exceeding management’s performance expectations.”

While international performance remains challenged, the analysts expect EBIT growth over time under a more capital-light model.

Shore Capital concluded that if its trajectory is confirmed, “M&S equity is wholly mispriced at this time,” arguing that the shares trade at a “major discount” to peers and could exceed 700p in the medium to long term.