Deutsche Bank sees UK retailer Marks & Spencer as a Buy, with a 435p price target, following this week's trading numbers.
Analyst Adam Cochrane says M&S, the UK retailer of food, clothing, home and beauty, exited FY26 more strongly than anticipated and that returning sales growth combined with cost efficiencies supports a case for margin recovery as management pivots to "re‑investment for growth."
Cochrane highlights that much of the restructuring is now behind the group and that exceptional charges should start to fall even as improved cash flows are channelled into a stepped‑up capital programme.
DB, in the note, pointed to M&S's guidance for c.£650–£750m of capex in 2026/27, with around two‑thirds targeted at Food, which the bank says should underwrite future profit delivery.
Analysts meanwhile flag continued like‑for‑like growth and new‑space ambitions as the next proof points, and say the market will watch whether profit growth resumes as M&S enters 2026/27.
