Marks & Spencer Shares Rally After JPMorgan Upgrade

Shares in Marks & Spencer (LON: MKS) rallied sharply on Tuesday, climbing as much as 4.6% to an intraday high of 400.4p, after JPMorgan upgraded the retailer to “Overweight” and raised its price target from 440p to 450p — implying roughly 15-19% upside for the stock.

The bank’s bullish note centred on what it called a “clear, quantifiable” opportunity for M&S to close a meaningful portion of its online margin gap in Fashion, Home & Beauty (FH&B).

JPMorgan identified three tangible drivers that could add around 400 basis points to online margins as the retailer’s new Lichfield distribution centre, due to open in 2027, ramps up operations.

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On the back of that analysis, JPMorgan lifted its FY29 group pre-tax profit forecast by 6%, leaving it slightly ahead of Bloomberg consensus and 5-6% higher than the market on FH&B and Food operating profit respectively.

Analysts stressed this was not the ceiling for potential gains, noting a more bullish scenario involving better order economics and sourcing could add a further 7% to profit forecasts.

JPMorgan also argued the shares remain attractively valued, trading at 10.7 times forecast 2027 earnings — about 7% below their five-year pre-pandemic average — despite what it sees as much-improved visibility on the company’s ongoing turnaround.

The move came against a broadly calm backdrop, with the FTSE 100 up just 0.2% on the day, underscoring that the rally was driven by company-specific optimism rather than wider market sentiment. M&S already carried a “Moderate Buy” consensus from analysts heading into Tuesday’s session.