Region:
UK
Edition:
Funds Insider
Funds Insider
05 Apr, 2016

The Expert View: Marks & Spencer, Ashtead & Experian

Our daily roundup of analyst recommendations on shares, including Shield Therapeutics andSpire Healthcare.

1 of 6
The Expert View: Marks & Spencer, Ashtead & Experian, slide no: 1
If you’d like to receive news alerts on any of the stocks mentioned in The Expert View, click on the star icons below to add them to your favourites.
2 of 6
The Expert View: Marks & Spencer, Ashtead & Experian, slide no: 2
Key stats
Market capitalisation£6,630m
No. of shares out1,623m
No. of shares floating1,605m
No. of common shareholdersnot stated
No. of employees83069
Trading volume (10 day avg.)6m
Turnover£10,311m
Profit before tax£487m
Earnings per share29.54p
Cashflow per share62.65p
Cash per share13.20p

*Correct as at 4 Apr 2016

Peel Hunt upgrades M&S as new boss steps up

Peel Hunt analyst Jonathan Pritchard raised Marks & Spencer (MKS) from ‘hold’ to ‘buy’ on hopes the department store’s new boss will revive sales at its troubled clothing division.

Steve Rowe has succeeded Marc Bolland as chief executive, stepping up from his previous role as head of general merchandise. However, he will continue to lead the division, which sells clothing and homeware and which saw margins improve and sales stall under Bolland.

‘The (GM) business unit directors will continue to report to me for the foreseeable future because that's where I believe the priority is...We need to get GM working,’ Rowe told Reuters.

Pritchard raised his target price for the shares from 400p to 450p saying he looked forward to hearing what Rowe would have to say at the full-year results next month.

‘First comes the Q4 interim management statement, which will look grim but the shares care more about the “world according to Steve”. We expect him to set out a pathway to recovery: 2010 to 2015 was profoundly disappointing.

'Our view is that within general merchandise, margin should be invested to improve product quality and value for money.’

He added: ‘short-term pain is required if M&S is to return to past earnings levels in a sustainable manner. We believe it can do so, and though it won’t all be plain sailing.’

The shares firmed 3.3p to 410.6p.

3 of 6
The Expert View: Marks & Spencer, Ashtead & Experian, slide no: 3
Key stats
Market capitalisation£4,276m
No. of shares out503m
No. of shares floating482m
No. of common shareholdersnot stated
No. of employees13042
Trading volume (10 day avg.)2m
Turnover£2,039m
Profit before tax£303m
Earnings per share60.13p
Cashflow per share132.92p
Cash per share2.09p

*Correct as at 4 Apr 2016

Ashtead due a re-rating, says Jefferies

Tool hire company Ashtead Group (AHT) is trading in line with US rival United Rentals despite better revenue and profit growth.

Jefferies analyst Justin Jordan retained his ‘buy’ recommendation and target price of £13.85 explaining: ‘Ashtead underperformed and trades in line with United Rentals, despite a consistent track record of better revenue and profit growth, delivering higher returns with lower leverage,’ he said.

‘While expecting mixed United Rentals Q1 [results] on 20 April, for Ashtead with easing energy comparisons, improving US macro and potential buybacks, we see [a] 2016 re-rating.’

Jordan added that while there have been concerns about a US recession ‘Ashtead underperformance seems overdone’.

The shares closed 11p or 1.3% lower at 846.5p.

Show and add comments
Loading...

Leave a comment

Please sign in or register to comment. It is free to register and only takes a minute or two.

Latest News

Opinion 18 Mar, 2025 Story By The Secret Tech Investor

The secret tech investor: the rise of the robots

They’re coming out of the factories and could change everything

More Top Stories

Get the latest news in your inbox

By clicking Sign up you agree to our Terms & Conditions.
Our privacy policy is available to read at any time here.

Fix the Future

Read more