// M&S receives surprise upgrade from US investor bank
// Goldman Sachs switches from “sell” to “buy” rating for department store
// Upgrade follows turbulent few months for retailer after dropping out of FTSE 100
Marks & Spencer saw shares rise more than four per cent on Monday after Goldman Sachs issued a surprise double upgrade for the retailer.
In a note to clients, the investment bank issued a “buy” rating from its previous “sell” stance, and increased its target price from 170p to 220p.
M&S has seen its value fall by more than a third since it hit a peak of just over 303p per share at the end of February, following news of its joint venture with Ocado.
In September it was demoted from the FTSE 100 for the first time since the index formed in 1984.
Goldman Sachs yesterday noted the retailer’s womenswear customer opinion metrics have improved from a low point in April this year, demonstrating that chief executive Steve Rowe is having some success in transforming the company’s troubled core division.
M&S also cut discounting ahead of Black Friday, Monday’s analyst note said.
Yesterday the high street stalwart made headlines for reported plans to shrink its flagships, via a review of its 20 biggest stores.