Marks & Spencer Group plc : ESG standards lead bullish trend
By Oscar Salza
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 380 | GBX 410 | GBX 358 | +7.89% |
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.