Berenberg lifts M&S price target, cites 'strong' reopening recovery

It said the retailer’s ad-hoc trading update on 20 August indicated a robust recovery since the easing of restrictions.

"We think the continued momentum highlights the progress made to address its weaknesses, and we believe it is emerging from the pandemic a stronger omnichannel business," Berenberg said.

"In M&S’s Clothing & Home (C&H) division, e-commerce initiatives continue to drive strong online growth; in the Food division, instore sales outperformed the market, while the Ocado tie-up benefits remain underappreciated."

The bank is forecasting pre-tax profit slightly ahead of the guided range, but recognises upside risk as workplace mobility recovers.

Berenberg, which rates the stock at 'buy', said the next catalyst will be the investor day on 7 October.

At 1010 BST, the shares were up 4.6% at 171.50p.