Currys – expected to benefit from Chinese dumping of mobile phones and gaming kit, shares at 97p are undervalued and capable of an early bash to 120p, brokers TP 170p

14.04.2025

Less than two weeks ago Currys (LON:CURY) the ‘omnichannel’ retailer of technology products and services, informed the market that its trading, since the start of this year, has been robust with positive like-for-like sales growth in the UK and Ireland, as well as in the Nordics.

The company stated that:

“With less than five weeks of the financial year remaining, Group adjusted profit before tax is now expected to be around £160m (compared to previous guidance of £145-155m).

The Group expects to finish the year in a strong net cash position.”

Dumping?

On top of that upgrading news for the group’s investors, it has, however, now become evident that it is going to be side-swiped by the effects of Trump’s Tarriffs.

This morning Alex Baldock, the boss of Currys, is being quoted as noting that there has been a flooding of Chinese products into the UK and European markets via platforms such as Amazon, Temu and Shein following the imposition of higher tariffs imposed by US President Donald Trump.

He has told the Financial Times that there were early signs of stock being diverted into European markets in a straightforward dumping way.

The retailer stated that he had been able to secure four to five times the usual volume of some products where supply is normally restricted.

“There are some scarce products (in gaming) that we wanted bigger allocations of than anyone could provide and suddenly we’re getting them because the stuff that was heading towards the US is now available.”

My View

This morning the £1.1bn-capitalised group’s shares are 1.50p better at 97p, at which level I rate them as being undervalued and well worth a 20% plus rise in price in due course.