Currys – ahead of its Finals tomorrow, the group’s shares look too cheap to ignore, now 121p, brokers TP 180p

02.07.2025

Tomorrow morning, Thursday 3^rd July, Currys (LON:CURY) will be declaring its Final Results for its 53-week trading period to Saturday 3^rd May.

Despite hassles and rising cost pressures within the retail sector generally, they should be well received and help to boost the shares of the technology products and services group back above its year’s High of 128.50p.

The accompanying statement of the group’s affairs may well encourage investors to chase the shares higher, perhaps up through the 157p peak achieved in April 2021.

The Group’s Business

Founded in 1884 in Leicester and established as a bicycle retailer in 1927, Currys expanded the range of goods sold and from the 1960s became a major retailer of household electrical items.

In 1984 the company was bought by rival retailer Dixons, and the Currys brand was used for all outlets of the combined company. 

Capitalised at some £1.33bn, the enlarged group is a leading omnichannel retailer of technology products and services, operating both online and through 708 stores in 6 countries and employing 24,000 people across its operations.

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

The group trades under the Elkjøp brand in the Nordics.

Its 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 states that it is the market leader in all its markets.

Trading Update

On 21^st May the group issued a Trading Update for its latest year.

CEO Alex Baldock stated that:

"We finished another year of strengthening performance on a high note with encouraging momentum and accelerating sales growth in both the UK&I and the Nordics.

In both, we've grown profits by delivering sales growth, market share gains and gross margin increases.

In the Nordics, we've also shown especially strong cost discipline in a still-challenging market.

Cashflow was very healthy.

This further strengthening of our balance sheet ensures our resilience and allows the resumption of dividends.”

The Equity

There are some 1.1bn shares in issue.

The larger holders include RWC Asset Management (9.97%), Dixons Carphone ESOP (5.46%), Equiniti Trust (5.40%), UBS Asset Management (5.39%), Cobas Asset Management (5.14%), The Vanguard Group (4.96%), Perpetual (4.90%), Schroder Investment Management (4.82%), BlackRock (4.35%), and JO Hambro Investment Management (3.96%).

Analyst Views

There are seven analysts following the group, two calling a Hold, while five make the shares a Buy.

The consensus across those analysts is for an average Target Price of 142p, with the Lowest being 95p and the Highest at 180p.

At Panmure Liberum, inspired by the cost savings, efficiency work, and tight working capital discipline, its analysts Wayne Brown, Ben Hunt and Anubhav Malhotra, rate the group’s shares as a Buy with a Target Price of 180p.

Over the last year, along with the group’s several Trading Updates, the analysts have upgraded their 2025 profit estimates by 26.5%.

For the year to end-April 2025 their estimates are for group sales of £8,523m (£8,476m), pre-tax profits of £161.8m (£118.0m), earnings of 10.8p (7.9), and, importantly, a returning to the dividend list with a payment of 1.3p (nil) per share.

For the 2026 year, they go for £8,624m sales, £164.6m profits, 11.0p earnings and with a 2.2p dividend per share.

In the group’s 2027 year,

the analysts look for £8,857m in sales, £181.2m of profits, 12.1p generated earnings and paying out a 2.4p per share dividend.

In My View

The shares, now 121p, are looking very under-rated and ready for a useful upward price correction.