The Marks and Spencer (MKS) share price popped by more than 14% on Friday after the company posted strong trading statement and boosted its profit target. The MKS stock price ended Friday at 163p, bringing its total market capitalization to more than 3.19 billion pounds. The shares have risen by more than 88% from their lowest level in 2020.
MKS strong earnings
Marks and Spencer is a leading British retailer that sells food, clothing, home items, and even oil products. The company also owns a bank and is in a joint venture with Ocado, the fast-growing e-commerce solutions company.
On Friday, the Marks and Spencer share price rose sharply after the company released strong results. It was also one of the most actively counters in London, according to data by Hargreaves Lansdown. The fiem said that its food revenue rose by 10% in ten weeks to August 17th.Its clothing business revenue rose by more than 90% because of weak comparables last year. These sales are about 2.6% below where they were in the same period in 2019.
Meanwhile, Marks and Spencer’s international revenue rose by 39.7% and was down by about 5.2% from the same level in 2019. In a statement, the management said that it expects that its sales will continue rebounding and will be at the upper side of the estimated 300 million and 350 million pounds range. So, can the MKS share price maintain its momentum?
Marks and Spencer share price forecast
Turning to the daily chart, we see that the Marks and Spencer stock price popped on Friday. This rally was part of a slow recovery rally that started on July 20th when the shares declined to 129.35p. The stock had also struggled moving below this support level several times before. It has also moved above the 25-day and 50-day moving averages.
Therefore, it seems like the MKS stock has bottomed at 129.35p, meaning that the shares may keep rising. Besides, with interest in UK retailers rising, there is a possibility that the shares will maintain the bullish momentum.
