Marks & Spencer Shares Pull Back Despite Upgraded Outlook

Marks & Spencer shares (LON:MKS) are lower today despite a series of positive analyst ratings and company developments. The MKS share price is currently 2.01% lower at 345.90p, giving back some of the gains seen during last week.

Sentiment in M&S shares is improving in the analyst community, with Berenberg the latest to revise their rating from ‘Hold’ to ‘Buy’ with a price target of 415p, a slight increase from their previous target of 412p. Berenberg cited a “relatively attractive” valuation at the current share levels as the key driver behind their bullish outlook. This upgrade adds to a growing list of positive assessments from the analyst community.

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Notably, JPMorgan reaffirmed its ‘Overweight’ rating on Marks & Spencer, maintaining a price target of 440p. JPMorgan highlighted the company’s strong performance within its Fashion, Home & Beauty division, specifically noting the effective management of excess inventory and the restoration of product flow.

The firm expressed confidence in M&S’s ability to sustain sales momentum and improve gross margins in the coming fiscal year.

However, not all analyst perspectives are uniformly positive. RBC Capital Markets downgraded Marks & Spencer to ‘Sector Perform’ in October 2025, citing increased execution risks following a cyber disruption and limited valuation upside compared to its peers. RBC acknowledged the company’s strong position in the premium food sector but expressed concerns regarding potential operational challenges.

With Marks & Spencer shares continuing to trade 4.5% higher since the start of the year, this latest move could be a test of the move, and a check for support. A bearish start to the week, following on from a bullish start to 2026.