LONDON (ShareCast) - (Sharecast News) - Analysts at ShoreCap told clients they believed they saw a "very attractive entry point" into Marks & Spencer's shares, given the increasing possibility of a rating expansion.
The food and fashion retailer's £482m of full-year profit before tax had smashed their estimate for £431m, on the back of a "major" beat on Food, alongside "strong" progress in Clothing.

And for the 2024 financial year, thanks to good trading momentum and further cost headwinds, they bumped up their estimate for pre-tax profit by 14% to £475m for earnings per share of 16.1p.

They were also anticipating a "modest" dividend payout for FY24, adding that the current price-to-earnings multiple on offer of 10.2 times was "modest", while the EV/EBITDA multiple was "lowly".

"[...] with rating expansion a strengthening possibility in our view; now should be a very attractive entry point."

ShoreCap was the house broker for Marks & Spencer.

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