Currys – early signs of recovery in its Nordics regions helps to drive group profit expectations even higher, shares now 110p, brokers TP 180p

01.05.2025

Just six weeks ago I questioned whether it was the right time to be buying back into the shares of the UK’s leading electronics and technology products retail group.

The shares of Currys (LON:CURY) were then 88p, with my suggestion that they could well be ready to rise above the 100p level and then forge onwards to 120p.

Well, that has not happened as yet, however, the rise to the current 110p indicates a firm intention for the shares to break my 120p aim and then go even better.

The Business

Founded in 1884, the company was formerly known as Dixons Carphone and changed its name to Currys in September 2021.

Capitalised at some £1,250m, the group is a leading omnichannel retailer of technology products and services, operating both online and through 715 stores in 6 countries. 

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

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

Latest Trading Update

At the start of last month, the group issued a current-year guidance, stating that since Saturday 4th January the group’s trading had been robust with continued positive like-for-like sales growth in the UK and Ireland and also in the Nordics.

It guided that group adjusted pre-tax profit is expected to be around £160m, compared to its previous guidance of between £145m to £155m.

Furthermore, it stated that the group expects to have finished the year to end-April in a strong net cash position.

The Equity

There 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 (6.07%), 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 Ratings

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 131.1p Target Price, the Highest at 180p, the Lowest at 95p.

Analysts Wayne Brown, Ben Hunt and Anubhav Malhotra, at Panmure Liberum, have a Buy rating out on the group’s shares, having recently increased their Target Price to 180p.

Their estimates for the year to end April 2025 are for sales of £8,523m (£8,476m) with pre-tax profits increasing to £158.8m (£118.0m), lifting earnings to 10.6p (7.9p) and returning it to paying dividends of 1.3p (nil) per share.

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

For 2027 they look for £8,926m sales, £180.9m profits, earnings of 12.1p and a 2.4p per share dividend.

In My View

They are on the way right now!

I am awaiting the group making its Pre-Close Trading Update in three weeks, on Wednesday 21st May, by which time the share price may well have edged ever higher, possibly above my 120p predicted level.

Thereafter, a spate of good news items running up to the declaration of its 2025 Finals on Thursday 3rd July, could see even that level being left behind.