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LONDON - Marks & Spencer shares continued to surprise traders and analysts alike with strong gains in the day as expectations of exceptional first-half figures sent them spiraling to a three-year high.
Most analysts are now tagging these shares with 'buy', but one of them admitted that the FTSE performance was surprising, "Nobody's got them. They hardly feature in any UK pension-fund managers' portfolio," he said referring to the shares which began climbing after a better than expected second-quarter trading update.
Cheuvreux, the French broker has made it very clear that strong marketing campaigns could take the M & S bandwagon even higher, "Buoyed by strong marketing campaigns, both food and clothing sales should continue to accelerate in 3Q,” the broker said in a statement. M & S shares hit the 400 pence a share mark and Cheuvreux has rated them 'outperform' for the year. The French broker expects these shares to climb as high as 430 pence.
Marks & Spencer shares rose by 14½ pence to 415¾ pence. It files the interim results on November 8. Meanwhile, the FTSE dipped by 25.5 to 5,182.1. The prices dipped in conjunction with a fall at Wall Street where a key economic gauge said that the consumer confidence had dropped way below expectations.
"Certainly looking at some numbers coming out of Wall Street people are coming to the fact that the market there ... is probably as attractively valued as it has been for some time and the momentum in corporate profits doesn't seem to be showing that much sign of waning," said David McCraw, head of index tracking at Aberdeen Asset Management.
Posted
on : Thu, 27 Oct 2005 07:40 GMT | Investments News
By : Anne Philips
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