Following strong outperformance in the last quarter, M&S is now fairly valued on 13.5x earnings, says Seymour Pierce analyst Kate Heseltine.
Q3 sales were broadly in line with expectation but gross margins were held back by surprisingly weak performance in food, she adds.
The broker's pre-tax profit forecast for FY10 remains £660m, with EPS of 30.0p.
In food, M&S continues to underperform Waitrose, while General Merchandise is becoming 'too value-orientated'.
'Mark Bolland joining as CEO, not expected until late spring, is likely to lead to months of indecision on strategy.'
Story provided by Business Financial Newswire
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