Marks & Spencer Group plc : ESG standards lead bullish trend
Entry price | Target | Stop-loss | Potential |
---|
GBX 380 |
GBX 410 |
GBX 358 |
+7.89% |
---|
Marks and Spencer is one of the UK’s leading retailers. It has over 703 stores across the United Kingdom, and its business is distributed in equal share between food products and clothing and home ware.
The company was ranked by FTSE as third worldwide group in retail sector as regards Environmental, Social and Governance standards. This especially for its green credentials, as a result of its five-year eco plan, which will see it becomes carbon neutral and send no waste to landfill by this year. According to Thomson Reuters’ consensus the company seems correctly valued with a price earnings ratio at 11.4x and an enterprise value to sales of 0.79x for this financial year.
Technically, the share is in a bullish trend on short and mid-term and now is very close to 381 GBp long-term resistance. This level could lead the share in a bearish trend in the very short-term, and pushes the share in the area of 363 GBp, where we can find the short-term support and 20 periods moving average. This point could be a good entry point for investors with a long horizon. We could fix a first target on the last years’ higher of 410 GBp, and then 427 GBp. We suggest a stop loss at 358 GBp.
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