Analyst Sees Marks & Spencer Shares Hitting 705p ‘in Due Course’

Marks & Spencer’s latest Capital Markets Day has reinforced confidence in its long-term turnaround, with Shore Capital suggesting the retailer’s shares could reach 705p “in due course” as its strategy gains traction.

Shore Capital said the 2025 event offered “another important update” on the company’s evolution under CEO Stuart Machin, supported by a recently strengthened senior leadership team. 

While the brokerage did not adjust its near-term forecasts, it argued that M&S (a company in which Shore Capital acts in an advisory capacity, a “House Stock”) is presenting “an evermore credible earnings runway” that could deliver 47p in earnings per share over time.

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According to the analysts, achieving this trajectory would unlock “notable rating expansion potential,” underpinned by what they describe as prodigious potential cash generation. 

On a price-to-earnings multiple of around 15 times, that EPS pathway implies a valuation approaching 705p, significantly above current levels.

The firm emphasised that M&S’s roadmap, spanning ongoing transformation in Clothing & Home, sustained progress in Food, and greater operational discipline, is steadily becoming more convincing. 

Shore Capital framed the CMD as a continuation of a multi-year strategic reset rather than a moment for revisions to short- or medium-term numbers, but said the underlying direction of travel appears increasingly robust.

Shore Capital stated that while it is too early to “demonstrably factor into our current investment thesis on M&S in the here and now,” it sees a firm “that has the management, the thoughtprocesses, the ideas and the toolkit” to deliver sequential EPS growth between FY26F-FY28F, and “create the basis for substantially elevated earnings, maybe a foreseeable pathway to 47p.”