Investors gobble up M&S to send shares to 7-year high as food hits the 'sweet spot'

Marks & Spencer shares reached their highest level in more than seven years after analysts said its food division hit a 'sweet spot'. The High Street stalwart rose 2.9 per cent, or 10.

2p, to 361.4p, hitting a level not seen since June 2017, after analysts at RBC and Barclays both raised their target prices on the stock to 400p. M&S won plaudits earlier this month after releasing a well-received autumn/winter fashion range.



But latest research from City experts threw the spotlight on its food and drinks offering. Marks & Spencer rose 2.9%, hitting a level not seen since June 2017, after analysts at RBC and Barclays both raised their target prices on the stock to 400p Barclays noted that the retailer's food business has grown its market share.

And for RBC analyst Richard Chamberlain, the division is in the 'sweet spot' and in a strong position to build its premium offering as rivals focus on keeping prices low. 'The M&S share price has performed well year to date but we see further upside driven by food outperformance, clothing full price sales and M&S's strong cash generation,' he said. The shares have gained nearly a third this year and have risen 62 per cent since it rejoined the blue-chip index.

.. John Abiona.