Currys – are this group’s shares, now at 88p, ready to rise back above the 100p level and then forge onwards to 120p? Analysts have Target Prices up to 170p!

18.03.2025

Right now could well be a good time to pick up a few shares in Currys (LON:CURY).

In the last year they have risen 72% from 59.05p last March to 101.60p a month ago, since when they have dipped back last Thursday to 85p, they are now slightly higher again.

Between now and 21st May, when the £997m-capitalised retail group plans to announce its Pre-Close Trading Update for its 53-weeks period for its 2024/2025 year, there could be a gentle moving ahead of the group’s shares, now 88p.

The question is whether they will break above the last year’s High and move even more in the upward direction – I believe that they will.

The Business

Currys is a leading omnichannel retailer of technology products and services, operating online and through 715 stores in 6 countries.

In the UK & Ireland it trades as Currys and in the UK it operates its own mobile virtual network, iD Mobile.

In the Nordics the group trades under the Elkjøp brand.

The group's operations include Europe's largest technology repair facility, a sourcing office in Hong Kong and an extensive distribution network, centred on Newark in the UK and Jönköping in Sweden, enabling fast and efficient delivery to stores and homes.

The company is the market leader in all its markets, serving all households and employing 24,000 people across the group.

Christmas Trading Update

On 15th January the group declared a Trading Update for the 10 weeks to 4th January 2025, showing a strong peak trading with an improved profit outlook.

CEO Alex Baldock stated that:

"We're pleased by our strong Peak trading.

We grew in both markets, continuing the trend of Currys' strengthening performance, and we believe this year's profits will be ahead of market expectations.

With our ever-stronger cash generation and much-improved balance sheet, the Board now expects to pay a dividend at the year-end.

This Peak, customers took advantage of our market-beating deals and best-ever availability.

AI laptops, where we have 75% market share, and premium mobiles proved especially popular.

In all markets, customers showed they preferred shopping both online and in-store, and our investments in both channels paid off.

In the UK&I, we've continued to grow sales and keep margins stable, offsetting current cost headwinds. iD Mobile and B2B performed especially strongly, as did sales of the services and solutions that are so valuable to customers and to us.

Nordics was back into growth, continuing its improving trajectory, outperforming competitors while improving margins and reducing costs.

In a still-weak market, the evident strength of our Nordics business bodes well for the future.

We start 2025 confident that our strategy is working and determined to keep building this ever-stronger Currys to the benefit of colleagues, customers, shareholders and society."

The Equity

here are 1,133,494,651 shares in issue.

The larger holders include RWC Asset Management (12.97%), Schroder Investment Management (8.31%), Cobas Asset Management (6.10%), Wishbone Management (4.99%), Artemis Investment Management (4.98%), Ruffer (4.62%), JO Hambro Investment Management (4.57%), Liontrust Portfolio Management (3.91%) and The Vanguard Group (3.82%).

Analyst Opinions

After taking into account the ‘in-year impact’ of the UK Government budget measures, which will be effective for the last five weeks of the Group's financial year, the group guided that its adjusted pre-tax profits are expected to be £145-155m range.

There are eight analysts following the group, five of whom call the shares a Buy, two a Hold and the other strangely being without an opinion.

The consensus average is for a 119.5p Target Price, the Highest at 170p, the Lowest at 95p.

Analysts Wayne Brown, Anubhav Malhotra and Ben Hunt, at Panmure Liberum, have a Buy rating out on the group’s shares, looking for 170p as their Target Price.

Their estimates for the 2024/2025 year are for sales of £8.50bn (£8.48bn) with pre-tax profits increasing to £152.1m (£118.0m), lifting earnings to 10.1p (7.9p) and returning it to paying dividends of 1.3p (nil).

For the April year end in 2026 they see £8.67bn sales, £157.4m profits, earnings of 10.5p and a 2.1p dividend per share.

For 2027 they look for £8.90bn sales, £174.2m profits, earnings of 11.6p and a 2.3p dividend.

Over at Berenberg its analyst Adam Tomlinson has the group listed as a Buy, with a Target Price of 125p.

He currently considers that the group’s shares offer deep value, noting that its services revenue and its mobile network is worth more than the current entire group market capitalisation.

In My View

Following the disposal of its Greek operations and the subsequent straightening of its cash position, this group now looks to be a good form, with an interesting spread of business.

Analysts suggest that the group’s shares are worth a lot more than the current share price of just 88p – with 120p/130p being a good trading range at which to aim for within the current year.