Goldman downgrades Marks & Spencer to 'neutral'

Marks & Spencer was under pressure on Friday after Goldman Sachs downgraded its rating on the retailer to ‘neutral’ from ‘buy’, citing limited upside.

Goldman noted that since being added to the ‘buy’ list on 9 December 2019, the shares are down 35% versus the FTSE World Europe up 1.2%.

"We attribute the underperformance to this year’s Covid-19 induced restrictions on trading activity," it said.

GS said there is upside of around 7%, versus the sector’s average upside of around 17%.

The bank left its 145p price target unchanged. It also made no changes to its estimates.

At 1030 GMT, the shares were down 2% at 127.65p.