Marks and Spencer: Relaunching Coverage With a No-Moat Rating and GBX 342 Fair Value Estimate

We relaunch coverage of Marks & Spencer, with a no-moat rating, Standard Capital Allocation Rating, and Medium Uncertainty Rating. Our fair value estimate is GBX 342, which places the stock in 2-star territory. While headwinds in the UK have dampened consumer confidence in recent years, we see an improving environment on the horizon that should benefit M&S. Still, we prefer consumer staples names under our coverage with more defensive qualities.