Next bags Citi earnings upgrade as Marks and Spencer retains key buy rating

What Brokers Say Retail & Consumer Written by: Ian Lyall 13:00 Tue 25 Aug 2026 --> Edited by: Jamie Ashcroft Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Ian Lyall Ian Lyall, a seasoned journalist and editor, brings over three decades of experience to his role as Managing Editor at Proactive. Overseeing Proactive's editorial and broadcast operations across six offices on three continents, Ian is responsible for quality control, editorial policy, and content production. He directs the creation of 50,000 pieces of real-time news, feature articles, and filmed interviews annually. Prior to Proactive, Ian helped lead the business output at the Daily... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Marks and Spencer Group PLC ( LSE:MKS ) View Price & Profile Next bags Citi earnings upgrade as Marks and Spencer retains key buy rating Published: 13:00 25 Aug 2026 BST Marks and Spencer Group PLC (LSE:MKS) and Next PLC (LSE:NXT) secured a bullish endorsement from Citi on Tuesday, as analysts maintained a top rating for the grocer and upgraded its retail rival. Shares in Marks and Spencer traded at 392p, up 1.90%, while Next reached 15,655p, up 2.49%, as the bank affirmed its 'buy' stance across the two prominent businesses. At the heart of the update is a confident assessment of structural tailwinds across the broader consumer landscape, with both food and fashion divisions poised for further upside. That optimism is heavily anchored in the thriving food operations of Marks and Spencer, which external data suggests will post double-digit sales growth into the 2026 financial year. Those robust grocery figures, combined with an expanding margin opportunity across Marks and Spencer clothing, leave analysts thoroughly convinced by the high street brand's overarching turnaround. To cushion fashion margins further, Marks and Spencer's Lichfield distribution centre is expected to unlock substantial cost efficiencies and bankroll additional group profitability from the 2029 financial year. In the same note, Citi highlighted rapid international growth at Next, upgrading forward adjusted pre-tax profit estimates by 3% for the fashion giant's 2027 financial year. This foreign expansion momentum means Next now commands a higher valuation, steadily closing the total shareholder return gap against best-in-class European rival Inditex. Looming large over these upgraded forecasts is the operational execution at Lichfield, leaving investors watching to see if Marks and Spencer delivers that promised 2029 margin windfall. Continue reading