Proactive Investors - Marks and Spencer Group PLC (LON:MKS) shares were higher in early trading after Deutsche Bank (ETR:DBKGn) upgraded its share price target from 350p to 430p, advising investors to 'buy' the stock.
This valuation change reflects strong ongoing sales in M&S's Food division, a pick-up in its Clothing sales, and double-digit percentage growth in sales from its partnership with Ocado (LON:OCDO) Retail.
The bank's analysts believe M&S is "continuing to get it right" with its strategy, which is driving growth across these key areas.
One area where M&S still has room to improve is its International business, which analysts expect to show more progress in the second half of the year.
The company's efforts to revamp its store locations are also seen as a long-term positive, contributing to sales growth in existing stores.
While the first-half results, due on November 6, might not be spectacular, the capital markets day on November 12 is expected to be more revealing.
Investors are likely to hear about improvements in sales performance, especially in the Clothing division, where the target for operating profit margins is expected to be raised.
There may also be an update on opportunities for growth in the International business, a sector that has recently been a strong performer for other retailers like Next.
In early trading, the stock was up 1.4% at 377.02p.