- Currys
- 30 May 2024 10:19:57
Source: Sharecast
Berenberg said Currys' improving sales momentum, expansion of market share and presence within a significantly depressed, highly discretionary segment of domestic retail makes it well placed to benefit from a near-term rebound in demand.
"Despite a record of building sales momentum and UK end-market dynamics that are well suited for demand recovery, Currys trades on a significant discount to peers," it noted.
"We expect this discount to diminish as trading momentum continues, indebtedness reduces further and growth accelerates."
Berenberg argued that Currys’ UK end-markets are poised for a more pronounced rebound in expenditure versus other non-food categories.
"We note that price-adjusted expenditure in UK small electrical appliances in 2023 was materially below the extrapolated 30-year growth trend post-2019, and further depressed versus other non-food categories.
"A partial reversion to trend growth in price-adjusted expenditure would deliver an improvement in revenue growth for Currys, in our view."
At 1020 BST, the shares were up 6.2% at 75.90p.