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Marks and Spencer Group PLC (LSE:MKS) and Next PLC (LSE:NXT) secured a bullish endorsement from Citi on Tuesday, as analysts maintained a top rating for the grocer and upgraded its retail rival. Shares in Marks and Spencer traded at 392p, up 1.90%, while Next reached 15,655p, up 2.49%, as the bank affirmed its 'buy' stance across the two prominent businesses.
Deutsche Bank has raised its target price on Next PLC (LSE:NXT) to 16,000p from 14,000p following the clothing retailer's second-quarter trading update, while keeping a hold recommendation on the stock. Analyst Adam Cochrane said the shares, which closed at 15,715p on Thursday, now offer only around 2% upside.
Next PLC's (LSE:NXT) latest upgrade has left analysts asking a familiar question: how much is the retailer holding back in its guidance? Second-quarter full-price sales grew 9.2%, more than double management's 4% assumption.
Next PLC's (LSE:NXT) latest upgrade was impressive even by its own standards, although analysts said the retailer's premium valuation left little room for its run of forecast-beating performances to falter. Shares climbed 6.2% to 15,725p after second-quarter full-price sales rose 9.2%, against company guidance of 4% and market expectations of around 6-7%.
The U.K. retailer now targets $1.67 billion in pretax profit as its stock has risen 19% over the year to date.
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