Currys – expecting to beat profit expectations in this year to the end of April, shares now 89p, brokers Target Price of 170p

03.04.2025

We will have to wait until Thursday, 21st May, to find out just how well the £1bn-capitalised Currys (LON:CURY) group has been trading in its year to end-April 2025.

However, this morning the technology products retailer has updated investors that the group is now expected to see its adjusted pre-tax profits coming in at around £160m, which is above previously upgraded expectations.

Also, we now understand that the group will end its trading year with a strong net cash position.

The Business

The group, which is a leading omnichannel retailer of technology products and services, operating online and through 715 stores in 6 countries, and is the market leader in all its markets.

In the UK & Ireland the group trades as Currys, while in the Nordics it trades under the Elkjøp brand.

Importantly, in the UK the group also has iD Mobile, which is its own mobile virtual network.

Analyst’s Views

At Panmure Liberum, its analysts Wayne Brown, Ben Hunt and Anubhav Malhotra, following today’s news, have upped their Target Price for the group’s shares from 170p to 180p.

They consider that the group should warrant a valuation of between £1.86bn and £2.35bn, compared with its current market value of just over £1bn, with its shares at 89p.

For the current year the analysts are now looking for sales of £8,523m (£8,476m), with pre-tax profits of £158.8m (£118.0m), lifting earnings to 10.6p (7.9p) and its dividend to 1.3p (nil) per share.

For the coming year to end-April 2026 they foresee £8,693m sales, £164.1m profits, 10.9p earnings and the payment of a 2.1p per share dividend.

In My View

There are some analysts, when looking at the whole of the Currys group, take the view that its mobile phone side iD Mobile alone, could possibly be worth just what the group is valued at – leaving the retail side in the UK, Ireland and the Nordics in for nothing.

That point has, no doubt, not been missed by potential predators (including certain Private Equity players, which adds takeover possibilities to an already undervalued situation.

Its shares at 89p could well offer massive upside.