Can they keep climbing? Let’s take a look at City analysts’ forecasts to see what the experts think.

Tipped to rise from here

At present, the average 12-month price target for Marks and Spencer shares is 431.5p, according to my data provider. That’s around 12% above the current share price.

If that price target was to be hit over the next 12 months, a £5,000 investment today could grow to £5,600 and that’s before dividend payments. The dividend yield’s around 2%, so that could add another £100, or so.

Is that forecast achievable?

Is that consensus price target realistic? I think so. For the financial year commencing 1 April 2027, the food and fashion retailer’s expected to generate earnings of 35.7p per share. So, a share price of 431.5p would equate to a price-to-earnings (P/E) ratio of 11.5.

That isn’t a high valuation. Especially when you consider that earnings growth next financial year’s expected to be around 8%.

I can definitely see the scope for that kind of earnings multiple in 2027. Comparing the P/E ratio with the earnings growth rate, we get a price-to-earnings-to-growth (PEG) ratio of 1.4, which again, isn’t high.

My assumptions

Of course, relying on that earnings forecast above involves making a number of assumptions. One is that consumer demand remains robust. There’s the risk that it could weaken. That said, M&S typically serves more affluent consumers and this demographic tends to have more spending power.

Another assumption is that the company’s costs don’t blow out. It’s worth pointing out here that the company’s planning to spend more on refrigeration as its fridges struggled to cope with June’s heatwave.

Higher oil prices are also potentially a risk on the cost front. They could increase transportation and energy costs.

Of course, I’m also assuming that there are no more cyberattacks. The attack last year was an absolute disaster and it had a big negative impact on both the company’s earnings and its share price.

Are the shares worth a look today?

Is there an opportunity to consider here then? I say there is – in my view, the shares have the potential to provide attractive returns in the years ahead.

It’s worth noting that the company said earlier this month that it has plans to return more cash to shareholders in the coming years. In other words, we could see higher dividends and/or increased share buybacks.

It seems analysts share my bullish view. Of the 18 firms covering the shares today, 16 see them as either a Buy or Strong Buy.

I’ll point out however, that there are plenty of other great opportunities in the market to consider right now. Marks and Spencer certainly isn’t the only UK stock that looks attractive.

What income stock do we like better than Marks And Spencer Group Plc right now?

One of our Share Advisor analysts has just released a brand new stock report that we think is a must-read for any investor looking to try and generate potential income.

And the best bit is that you can see if for yourself, right now, absolutely free of charge!

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Edward Sheldon does not hold any positions in the companies mentioned

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Obviously, forecasts should always be taken with a pinch of salt, but they remain useful tools in gauging sentiment. And right now, there are several cheap stocks to consider that could be getting ready for an impressive rally.

Let’s dive in.

Marks & Spencer: a cyber recovery play

Marks & Spencer Group (LSE:MKS) needs little introduction. And while the retailer has been a stellar performer over the last five years, rising by 127%, the last 12 months have been far less impressive. In fact, the share price basically hasn’t moved.

The recent weakness stems from a well-publicised cyber-attack that caused significant operational disruption last year. The impact on the financials was made clear in its latest results, which saw pre-tax profits slip by 28.8%.

But that’s only half the story. After restoring operations, both sales and profits immediately bounced back and returned to growth. So much so that earnings over the next 12 months are expected to be far more impressive, placing the forward price-to-earnings (P/E) ratio at just 11.8 times.

For reference, Tesco’s forward P/E sits closer to 15.3 times – signalling a significant discount against a leading rival.

However, the near-term risk is consumer spending. A potential rise in inflation driven by higher energy prices could squeeze real-terms wage growth and dampen retail activity. But with net interest costs covered 3.1 times by operating profits even after the profit slump, the balance sheet looks well placed to weather the storm.

British Land: cheap property in plain sight

British Land‘s (LSE:BLND) another FTSE 100 stock potentially primed for a strong performance, this time within the commercial real estate sector.

After falling around 20% over the past five years, the shares now trade at a price-to-book ratio of just 0.7. In simple terms, that means investors can buy £1 worth of assets for just 70p and earn a chunky 5.6% dividend yield on top of this.

Full-year results showed EPS rising 1% last year, with net profits expected to grow by 6% in the current financial year and a further 3%-6% annually thereafter. Management’s actively recycling capital into higher-return assets, and the loan-to-value ratio of 39.2%, while slightly elevated, remains within manageable territory.

In this case, the biggest risk is interest rate sensitivity. And it’s why the stock’s trading at such a large discount.

As a highly-leveraged real estate investment trust (REIT), any return to higher interest rates would increase debt costs and suppress the group’s net asset value. And given the inflationary backdrop, that risk’s very real.

The bottom line

Both M&S and British Land are classic examples of quality businesses being underpriced in a pessimistic market. That doesn’t guarantee these cheap stocks will be big winners. After all, they both have significant headwinds to overcome.

But with weak sentiment dragging the share price down to potentially unreasonable levels, both could be nicely positioned to play catch-up, especially if the FTSE 100 does start climbing towards the 11,668 point target over the next 12 months.

Should you invest £5,000 in British Land Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if British Land Plc made the list?

Zaven Boyrazian does not hold any positions in the companies mentioned.

The post FTSE 100 to surge to 11,668! 2 cheap stocks to buy before the rally appeared first on The Twelfth Magpie.

Since May 2021, the share price has jumped 113.9%. And anyone who reinvested the dividends paid along the way has earned an even greater 119% gain – enough to turn a £5,000 initial investment into £10,951.50 today.

The group’s turnaround efforts of reshaping its stores, improving its product ranges, and upgrading its digital capabilities have clearly created value. But now the question is, can it do it again?

The bull case

Marks & Spencer’s business has fundamentally improved over the last five years.

Its Food division, long seen as the strongest part of the company, has been taking market share and continuing to post solid growth. Even in its latest updates, food sales outperformed the wider grocery sector, driven by improved value perception and a record number of customers returning to its stores.

The Fashion, Home & Beauty side of the business has also been overhauled. After years of struggling with tired ranges and bloated store space, management’s seemingly modernised its fashion offer, targeted younger shoppers, and closed underperforming locations.

But efforts to bolster underlying performance are still playing out. The company’s actively investing in new, more efficient distribution centres and is pressing ahead with store revamps.

Therefore, if management can keep delivering margin improvements while continuing to win market share in food, investors could be on track to enjoy even more impressive gains in the coming years.

What could go wrong?

Not everything has been hunky dory. 2025 saw the company taking a pretty massive hit as a result of a cyber-attack, which disrupted its online checkouts, particularly for the Fashion, Home & Beauty segment, which saw full-year sales slump 7.7% during the 12-month period ended in March.

While this cyber breach has been sorted, looking ahead, the retail environment remains tricky. Food sales are seemingly holding up well, but with consumer discretionary spending under pressure, delivering further growth could prove challenging.

For Marks & Spencer, the firm may be forced to do some heavier discounting activity to retain its recent market share gains. While that’s great news for shoppers, it’s less so for profit margins and the bottom line. And don’t forget, profitability’s already getting squeezed as a result of the recent National Insurance and Minimum Wage changes in the UK.

So is the rally over?

Marks & Spencer seems to be in a much stronger position today compared to five years ago, even after the cybersecurity breach. And with the stock trading at just 9.4 times forward earnings, the valuation isn’t too demanding either.

As such, when looking at the latest share price forecasts from institutional investors, the consensus is that Marks & Spencer shares still have more room to grow. With that in mind, while the risks of margin pressure are real, investors seeking to diversify into the retail sector may want to consider taking a closer look.

Should you invest £5,000 in Marks And Spencer Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Marks And Spencer Group Plc made the list?

Zaven Boyrazian does not hold any positions in the companies mentioned.

The post £5,000 invested in Marks & Spencer shares 5 years ago is now worth… appeared first on The Twelfth Magpie.

The weak headline figures were a result of last year’s cyberattack. It meant M&S had to suspend all online sales for around six weeks as it worked to recover its systems. And many shelves were left empty as distribution logistics were upended.

But the profit hit was less than feared.

Back to growth

That was an extraordinary year. We were laser focused on our customers, worked incredibly hard to recover our business, and we came out stronger.
— CEO Stuart Machin

For the new financial year, management expects to get back to profit growth — compared to levels from before the attack. And the company pushed on with its transformation plan, in spite of the setback.

The future isn’t without its difficulties, mind. CEO Stuart Machin warned: “Retailers face a triple whammy of headwinds with increased taxation, a greater regulatory burden and ongoing global conflict.”

He added: “At M&S we are unshaken by short-term events.” That’s an approach long-term investors really should strive to emulate. And it looks like they did — the share price wobbled on news of the cyber breach, but there was no major sell-off.

Long-term approach

The relatively calm approach from M&S shareholders takes a bit of the short-term risk off a potentially volatile retail stock, in my eyes. And it makes me think more favourably towards the idea of investing. Although Marks & Spencer shares are still down 8% over the past 12 months, we’re looking at a 120% rise in five years.

In an expression of confidence, the board announced a 16.7% rise in the full-year dividend to 4.2p per share. That’s only a 1.3% yield on the previous day’s closing price. But it’s still marginally better than expected. And in the words of this latest update, it’s “conservative, reflecting the current investment phase.“

There appears to be plenty of cash on the books, with a net £338.2m (excluding lease liabilities). But I’d prefer a company to prioritise its use of cash to boost long-term prospects rather than fill short-term pockets. Sadly, too many seem to have it the opposite way round.

What should investors do?

I confess I’m pulled in two directions here. Going on adjusted earnings per share, Marks & Spencer shares are now on a trailing price-to-earnings (P/E) ratio of 14.2. But based on statutory figures, it’s up at 26.7. In the case of M&S’s management, I think I trust them to make the adjustments fair — and that’s not a bad valuation.

Analysts have a forecast P/E of 10.4 for the 2026-27 year, which also seems attractive. But does it really allow enough safety room to cope with the dangers facing the retail sector — that “triple whammy“?

Retail is just too uncertain for me to want to buy into it now. But saying that, I rate M&S as possibly one of the long-term best in the sector under its current management. And I reckon retail investors should definitely take a closer look.

Should you invest £5,000 in Marks And Spencer Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Marks And Spencer Group Plc made the list?

Alan Oscroft does not hold any positions in the companies mentioned.

The post As Marks & Spencer storms back from its 2025 cyberattack, is it time to buy the shares? appeared first on The Twelfth Magpie.

The drop is largely due, in my view, to the broadly softer tone in UK retail data in the past year or so. This is despite M&S outperforming the wider sector by a big margin.

Store upgrades are driving stronger sales density, while the food arm is gaining share across the market. At the same time, its clothing margins have been reset at a higher, more durable level.

All this positions the firm well to extend its outperformance and deliver strong earnings growth. So, where could the share price be headed?

How high can the stock go?

A share’s ‘fair value’ is where it ‘should’ trade, based on the long-term fundamentals of the underlying business. Price, meanwhile, is just a short-term marker of wherever buyers and sellers are happy to trade at any point.

Discounted cash flow (DCF) analysis values a business by estimating its future cash generation and discounting it back to today. When those forecasts become less certain, investors demand higher returns, which increases the discount rate.

Depending on their assumptions, analysts’ DCF valuations may differ. But based on my own framework — including an 8.2% discount rate — M&S shares look 62% undervalued at their present £3.20 price.

That places fair value at roughly £8.42 — more than double the current level. If markets continue to move toward fair value, this could be an outstanding buying opportunity to consider if that DCF modelling proves accurate.

What’ll drive share price gains?

Share price gains are ultimately powered by sustained rises in a company’s profits over time. A risk to M&S is a sharper downturn in consumer spending, which could slow sales momentum. Another is an intensification of competition that could pressure margins.

Nonetheless, analysts forecast that M&S’s profits will rise by a yearly average of 31% over the medium term at minimum. Its 12 November Capital Markets Day strategy meeting highlighted some of the key drivers behind this.

It broadly expects more store openings, stronger value perception and a modernised supply chain to lift sales and profit margins in its Food division. And it sees a doubling of its online Fashion, Home & Beauty business, driven by product leadership, improved omnichannel capability and more efficient logistics.

It also envisages a £600m structural reduction in costs by 2028 through investment in automation, technology and supply‑chain simplification.

My investment view

M&S now looks like a business with genuine momentum behind it, not just a recovery story. Stronger trading, a clearer growth strategy and a structurally lower cost base give it a far more resilient earnings profile than in the past.

With profits forecast to rise sharply, the valuation still appears to underestimate the scale of the transformation under way. The balance sheet is stronger, cash generation is improving and management execution has been consistently ahead of expectations.

Taken together, these factors make M&S a compelling prospect for investors looking for both growth and improving income potential, in my view.

And I will certainly be adding to my own stake in the firm soon. In addition, I have seen other deeply undervalued stocks — several offering high dividend yields — in other sectors recently.

Simon Watkins has positions in Marks And Spencer Group Plc. The Twelfth Magpie has recommended Marks And Spencer Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor and Hidden Winners. Here at The Twelfth Magpie we believe that considering a diverse range of insights makes us better investors.

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That means £10,000 invested in the FTSE 100 retailer a year ago would be worth around £8,700 today. Not the result investors were hoping for from one of Britain’s most beloved high street names.

The hack

The culprit? A devastating cyberattack that sent shockwaves through the business and the broader retail sector.

The hack — which disrupted M&S’s online operations, paused contactless payments, and forced the company to pull its click-and-collect service — was one of the most significant cyber incidents to hit a UK retailer in recent memory.

At its peak, the disruption was costing the company an estimated £43m a week in lost online sales.

The market reacted accordingly.

Shares that had been riding high on the back of a genuine operational turnaround — strong food sales, a resurgent clothing division, improving margins — suddenly found themselves under pressure from a threat that had nothing to do with M&S’s underlying business fundamentals.

A Gulf crisis

More recently, the conflict in the Gulf has held the shares back despite the company trading at some of the lowest multiples we’ve seen in the last decade.

What’s the Gulf link? It’s because higher natural gas prices feed directly into fertiliser costs — natural gas is the primary feedstock for nitrogen fertiliser production — and that upstream pressure inevitably works its way through the supply chain, squeezing supermarket margins at exactly the wrong moment.

A protracted conflict remains one of the biggest risks to the business.

An opportune moment

Sometimes the best time to invest is when the chips are down.

For M&S, the cyberattack disruption is behind it. The Gulf crisis is a live risk, but geopolitical shocks of this nature tend to have a shorter shelf life than markets initially price in — and energy prices have a well-documented habit of retreating sharply from their peaks. The 2008 oil spike and subsequent collapse is the textbook example.

Neither issue looks permanent.

The interesting part of the equation is the valuation. Personally, I don’t believe there has been a more attractive time to buy Marks & Spencer shares over the past decade.

It’s currently trading at just 10 times forward earnings. But earnings growth remains really strong over the medium term. The forward dividend yield sits around 2% — covered five times by earnings — and net debt is manageable around £2.5bn.

Forecasts point to the price-to-earnings (P/E) ratio falling to around 9.3 times in 2028 and this represents a huge discount to peers in the grocery segment. Tesco is currently around 15.4 times forward earnings, moderating sightly into 2028.

The bottom line

UK businesses can take a lot longer than their US counterparts to reach fair value. This is even the case outside of tech. For example, I bought an overlooked defence stock in November (ISSC), it was up 200% in three months.

In the UK, I spent years waiting for Barclays and Lloyds to come good. Eventually I was rewarded, but it took time.

I believe Marks & Spencer might be another example. So I’m building my holding and hoping the market will realise the value proposition here sooner rather than later.

It’s certainly worth considering.

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Victoria Wood, the British comedian, once joked: “I know I’m different sizes in different shops, 16 in some, 18 in others. In Marks and Spencer’s, I’m only a size three because they don’t want to upset anybody.”

Then and now

Although those who bought the retailer’s shares in April 2021 might not be laughing all the way to the bank, they’re probably patting themselves on the back.

A £5,000 investment at the time would have bought 3,185 shares. Today (15 April), they’re worth (excluding dividends) an impressive £11,498. As an illustration of how well investors have done, the same investment now would get them 1,800 fewer shares.

But does a 130% rise in the retailer’s share price mean it’s too late to consider the stock? Let’s see.

Growth opportunity

Although the group is probably more talked about for its clothing, it’s the food side of the business that most interests me.

Over the past three financial years, fashion, home, and beauty customer numbers have remained flat. Last year, they were overtaken by grocery shoppers for the first time. Food customers have increased 9% over the period and, significantly, they’re making an average of 2.9 more visits a year to the group’s shops.

Indeed, the company has set itself the target of doubling the size of its grocery business over the long term. To achieve this, it’s aiming to increase its number of food-only stores from 328 to 420.

Sometimes it’s forgotten that, since September 2020, the group’s had a joint venture with Ocado. During the 12 weeks to 22 March, it recorded a 2.2% share of the British grocery market. It’s never been higher.

Some challenges

Undoubtedly, there was a loss of investor confidence following last year’s cyberattack. This cost a lot to put right but, more significantly, led to some loyal customers shopping elsewhere.

Despite this, they came back and the group’s reputation with consumers appears unharmed. According to polling by YouGov, based on a combination of perception, quality, value, reputation, and satisfaction, it remains the nation’s best brand.

Of course, operating a chain of shops is logistically challenging. And the fashion industry is notoriously difficult to get right with consumer tastes changing quickly. That’s another reason why I believe the emphasis on its less-cyclical food business is the right strategy.

Final thoughts

Personally, I think the group’s made great strides over the past 10 years or so, with progress only interrupted by the pandemic. Both its profit before tax and return on capital employed are going in the right direction.

And despite changing shopping habits, it remains an important part of Britain’s high streets and retail parks.

I like what I see. That’s why I think it’s a stock to consider.

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In fact, with enough time and compounding, even FTSE 100 stocks can eventually grow a modest portfolio to millionaire territory.

So, how can investors actually find these top-notch stocks? And which companies are the experts backing on their wealth-building journeys?

The best UK shares use short-term challenges

At some point along its journey, a business will encounter enormous disruptions or challenges.

But it’s the businesses with the financial resources, superior cash flows, and competitive advantages that are often the ones that make it through the storm.

The strongest of these are those that leverage short-term chaos to steal market share from their weaker rivals. That way, when the wider industry or market cycle starts to recover, the business will be in a much stronger position to dominate and reward shareholders with chunky long-term returns.

So, the question now becomes, which UK companies are currently trying to do just that?

Spoilt for choice

In 2026, there is a long list of companies investing through the short-term downturn in the pursuit of long-term gains.

Barratt Redrow is consolidating smaller homebuilders in a falling housing cycle. Greggs is building out new factory facilities to support an expanding network of retail stores during a consumer spending slowdown. And BT Group is revamping its telecommunications infrastructure to bring down operating costs in an inflationary environment.

But one FTSE company that currently stands out as potentially one of the best shares to consider buying now is Marks & Spencer (LSE:MKS).

Under the new leadership of Stuart Machin since 2022, the company has significantly changed its destiny, expanding its food business ahead of the industry while simultaneously capturing previously lost ground within the fashion sector. In fact, during 2025, Marks & Spencer achieved its highest market share in womenswear in nine years.

This operational momentum has already delivered a 130%+ increase in the stock’s market cap over the last five years, or around 19% on an average annualised basis.

However, with the forward price-to-earnings ratio standing at just 10.5, some institutional analysts think more momentum could still lie ahead.

For example, the team at UBS recently issued a 425p share price target – roughly 16% ahead of current levels. And if M&S continues to outpace its industry in the long run, the stock could turn into a quality compounder that eventually helps elevate a portfolio to seven-figure territory.

What’s the verdict

While M&S shows promise, it’s important to recognise it’s not a risk-free investment. As a more premium food retailer, the company can be sensitive to economic shocks as consumers seek better value for money from fiercely competitive discounters.

There’s also understandable concern about the firm’s ability to protect its upgraded technological infrastructure. After all, its cybersecurity systems failed to protect the firm from a ransomware attack last year. And while the business has seemingly bounced back, another breach could signal a more structural vulnerability.

Nevertheless, for investors looking for potential top-notch shares to buy that are hiding in plain sight, Marks & Spencer could be worth a closer look.

The post What are the best UK shares to buy now to try and make a million? appeared first on The Twelfth Magpie.

As most readers will know, the conflict in the Gulf has weighed on the stock market. Some stocks are down more than others. And that depends on their exposure.

Personally, my strategy is to buy stocks when the market is taking a hammering. It might sound painful, but it’s how some of the best investors operate.

However, I appreciate some investors may wish for tensions to die down before investing further.

Geography matters

Around 20% of the world’s oil passes through the Straits of Hormuz every single day. When that shipping lane is disrupted or threatened, oil prices stay elevated — and elevated oil doesn’t just mean expensive petrol at the forecourt. It ripples through the entire economy.

Jet fuel, which is essentially refined crude oil, is one of the largest single cost lines for any airline or package holiday operator (as much as 35% of operating costs). And food inflation is partly an oil story too, because energy costs sit inside fertilisers, packaging, cold storage, and logistics.

This is why both Jet2 (LSE:JET2) and Marks & Spencer (LSE:MKS) have been hit by the conflict despite having almost no operational exposure there.

Jet2: priced for disaster

Jet2’s share price has fallen 42% from its 52-week high to 1,121p.

It now trades at just 6.3 times forward earnings (P/E). That alone looks good value relative to peers, but the company also boasts an incredibly strong balance sheet. Remember, P/E ratios are only really relevant when they’re contextual.

Jet2’s balance sheet is fortress-like, and that makes it well positioned to navigate uncertainty like this. It’s a little confusing because of the presentation in the earnings documents, but the company appears to have a net cash position of £800. That’s substantial for a company generating about £400m in net earnings per year.

Of course, a prolonged conflict here is a risk. Jet2 is phenomenally well hedged — over 75% of jet fuel purchased for the year — but the longer the conflict goes on, the greater the exposure becomes to sky-high spot prices.

It’s worth considering. Definitely my favourite in the sector.

Marks & Spencer: just needs a clean break

M&S has had its own difficult year — remember the ransomware attack.

Right now, however, UK grocery inflation is still running at 4.3%, squeezing food margins and dampening consumer sentiment. The irony is that M&S’s underlying business is performing well — revenues rose 23% in its last half-year to £7.94bn, and analysts expect earnings per share to grow 46% this year to 22.7p. In turn, this implies a forward PE of just 10.7 times.

The war, of course, threatens more inflationary pressure, starting with fertiliser costs. The shorter the conflict, the quicker the recovery.

Nonetheless, this is an excellent business, with genuine operational momentum. It’s absolutely worth considering, and the risk profile will decrease if the conflict ceases.

The post Consider these 2 dirt-cheap stocks to buy if the Straits of Hormuz permanently reopen appeared first on The Twelfth Magpie.

Price and value often drift apart in shares, especially when a business turnaround is gathering pace beneath the surface. In this case, M&S’s revival in Food and Clothing is now showing up in sustained market‑share gains and a far healthier adjusted earnings profile than the headline numbers imply.

So, how does the earnings trajectory look now, and how wide is the price-to-valuation gap?

Strong earnings momentum?

Earnings growth ultimately drives any firm’s share price. A risk to M&S is any further cyberattack of the sort announced last April, which prompted the share price slide. Another is any slowdown in UK consumer spending that could squeeze discretionary sales.

That said, consensus analysts’ forecasts are that M&S’s earnings will soar by an average 34% a year over the medium term. It latest major results (H1 2025) look supportive of this, with sales jumping 22.1% year on year to nearly £7.9bn. The number underlines the strength of M&S’s multi‑channel model (stores, online, third‑party partnerships), and the benefits of consolidating Ocado Retail.

Food remained the standout performer, with sales up 7.8% to £4.5bn. This underscored the continued success of its value‑and‑quality strategy and three years of consecutive monthly volume growth.

The International division also contributed positively, with operating profit up 24.3% to £13.3m, illustrating the gains from its commercial reset.

Together, these drivers point to a business with clear momentum as systems reset following the cyber incident and new investment pays off.

What’s the real value of the shares?

With that operational momentum in place, the next question is what all this progress means for the stock’s valuation.

Discounted cash flow analysis allows investors to identify where any share should trade by projecting future cash flows and ‘discounting’ them back to today.

Some analysts’ DCF modelling is more conservative than mine, due to the data used. However, based on my DCF assumptions (including a 7.5% discount rate), M&S shares are 58% undervalued at their current £3.52 price.

This implies a fair value for the shares of around £8.38 — more than double where they trade today.

So that gap suggests a potentially superb buying opportunity to consider today if those DCF assumptions prove accurate.

My investment view

With earnings momentum building and the price-to-valuation gap still wide, I see M&S as a compelling opportunity.

The combination of strong Food performance, improving group profitability, and the long‑term benefits of Ocado Retail makes me optimistic about the earnings trajectory.

On that basis, I will be buying more shares soon, and I think they are worth the attention of other investors too. I also have my eye on other deeply discounted, high-growth stocks…

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