Broker tips: M&S, Carnival, UK grocers
Societe Generale has lifted its target price for Marks & Spencer from 492p to 524p but maintained a 'hold' rating on the high street retailer, saying it sees little upside from current levels.
Carnival
1,093.00p
14:00 25/04/24
Food & Drug Retailers
3,908.07
14:00 25/04/24
FTSE 100
8,065.05
14:00 25/04/24
FTSE 350
4,429.30
14:00 25/04/24
FTSE All-Share
4,383.33
14:00 25/04/24
General Retailers
3,906.74
14:00 25/04/24
Marks & Spencer Group
258.90p
14:00 25/04/24
Morrison (Wm) Supermarkets
286.40p
16:55 26/10/21
Sainsbury (J)
260.80p
14:00 25/04/24
Tesco
290.00p
14:00 25/04/24
Travel & Leisure
7,543.74
14:00 25/04/24
Ahead of trading update on Thursday, the broker said it no longer reckons M&S will produce a meaningful recovery in general merchandise like-for-like sales in the foreseeable future.
Numis Securities has raised its stance on Carnival Corporation from 'hold' to 'add' and its target price from 2,950p to 3,600p, saying the outlook is improving for the cruise industry.
The broker said that Carnvial's first-quarter results last week "provided clear evidence of improving industry fundamentals, we believe, demonstrating strong like-for-like (constant currency) net revenue yield growth".
Structural headwinds are persisting for UK grocers, with low inflation and falling calorie intake presenting a problem across the supermarket industry, according to Goldman Sachs.
The bank downgraded its recommendation on Morrisons to 'neutral' on Monday, saying the stock has now reached its target price. It reiterated 'sell' ratings on rivals Sainsbury and Tesco.
"A small recent slowdown in growth rate of the discounters has come alongside a more aggressive profit rebasing than we forecast by Tesco. The average 15% share price rise year-to-date for the group suggests growth, long-term margin and capex assumptions which we do not believe are achievable," it said.