Currys - exceeding expectations again, shares 125.4p will rise, TP 200p

Mark Watson-Mitchell
7 minutes ago
3 min read

Mark Watson-Mitchell - 21.01.2026

This morning Currys (LON:CURY) has announced another increase in its profits guidance.

Certainly good enough to get the shares moving higher again.

Last night they closed at 125.40p, towards the end of last October they hit 146.27p - that is a level at which I believe they will be trading at again very soon.

The electrical retailer reported strong trading for the 10 weeks ended 10th January 2026, with group like-for-like revenue growth accelerating to 6%, driven by a 3% increase in the UK & Ireland and a standout 12% growth in the Nordics.

The company now expects group adjusted profit before tax to be between £180-190m, exceeding market expectations, and has a £50m share buyback program underway, bringing total cash returned to shareholders to approximately £75m for the year.

The group has guided that its Year-end net cash is projected to finish above the £100m target.

The group guided that its adjusted profit before tax is expected to be £180-190m, and ahead of consensus expectations.

Management Comment

CEO Alex Baldock stated that:

"We're pleased with our very strong trading over Peak, growing sales healthily and in a disciplined way.

We now expect this year's profits to exceed market expectations, to keep returning cash to shareholders and finish the year with more than £100m net cash.

Our Omnichannel model is winning.

We gained market share in both UK&I and Nordics, in both stores and online, and our fastest growth was where customers use both channels together.

This is a competitive advantage we'll keep building.

In the Nordics, which represents over 40% of our business, the market continued to recover, and we grew sales in every category, and every country.

Along with sales growth, we've kept our hard-won margin and cost discipline which are producing substantial growth in profits and cashflow, a fitting reward for the team's great work in building a sustainably stronger business.

In the UK&I, we grew sales in our core business and the growth areas we've targeted.

Our sales to small and medium-sized businesses grew by +21%, iD mobile reached 2.5 million customers, and credit adoption of 25% was double that of five years ago.

These are all sources of higher-margin and recurring revenue.

We maintained healthy underlying gross margins which, alongside cost savings, are offsetting unhelpful cost headwinds.

We go into 2026 confident in our strategy and energised by the opportunities ahead."

Broker's View

Analysts Wayne Brown, Ben Hunt and Anubhav Malhotra, at Panmure Liberum, have a Buy rating on the group's shares, with a 200p Target Price.

They note that the strategy is clearly driving major gains, and this is coming from new categories, new channels and a service overlay that is making the quality of these revenues much higher.

The opportunity lies in that Currys is entering into a phase where the investments it has made over the years is now driving market share gains that its competitors just can’t keep up with.

They see this resulting in strong cash flow generation and continued positive earnings momentum just like the company has delivered over the last 12 months.

Their estimates for the year to end-April 2026 are for sales of £9,070m (£8,706m), with pre-tax profits of £184.9m (£162.0m), lifting earnings to 13.4p (11.3p) and increasing the dividend to 2.6p (1.5p) per share.

My View

The shares are undervalued at 125.4p, valuing the whole cash-rich group at £1,394m.

I now set a new Target Price at 155p.