Marks and Spencer's (LSE:MKS) clothing arm is still feeling the after-effects of the cyber attack that struck the retailer in May 2025, according to Deutsche Bank analyst Adam Cochrane.
The analyst, in a note, pointed to summer market-share data showing M&S has missed opportunities in womenswear, particularly among older shoppers, alongside gaps in smaller-size availability and kidswear ranging, which he called disappointing.
Deutsche Bank reiterated its Buy rating on Marks and Spencer with a 435p price target, implying around 8% upside from the last close of 401.80p.
Cochrane said the shortfall traces back to a "limited" but still lingering hangover from the cyber incident, which cost the retailer £131.3m in the last financial year and contributed to a 23.8% drop in adjusted profit before tax to £671.4m.
Despite that near-term drag, a breakfast meeting with chief executive Stuart Machin left Cochrane reassured on the company's longer-term direction, with actions underway to build sustainable sales and earnings growth.
The analyst singled out a cultural shift at the retailer, one where mistakes are admitted and calculated risks are taken, as an important development.
Marks and Spencer has guided for profit growth to resume in the 2026/27 financial year, with capital expenditure stepping up to between £650m and £750m, around two-thirds of it directed at the Food division.
