Marks and Spencer Group’s share price was heavily penalized and is now in an oversold situation near to a solid support area.

From a fundamental viewpoint, Marks and Spencer Group seems undervalued in terms of enterprise value. Based on the current price, its market capitalization, plus its net debt, represents 0.96 times its revenues.
This valuation is only 14 and 12.75 times the two next years earnings.

Currently the stock is oversold and, in the mid-term, is trading in a bearish trend. In the short term, this trend is reversed upon contact with the GBp 488.8 area. Marks and Spencer Group should be able to confirm its increase in the next trading sessions. This support is a trading opportunity in order to anticipate a technical rebound towards GBp 523.5 and by extension towards GBp 550.5.

Thanks to the technical pattern and Marks and Spencer Group’s strong fundamentals, active investors can open long positions above GBp 488.8. The downside potential is limited and the timing seems perfect to benefit from a technical rebound.
The goals will be fixed at GBp 523.5 in a first time and then at GBp 550.5.
However, a bearish trend would regain the upper hand if the security crosses GBp 488.8.