- Dunelm Group
- 12 February 2025 12:06:02
Source: Sharecast
Nick Wilkinson announced on Tuesday that he would be stepping down from the company, choosing to retire from full-time executive life.
But while his departure creates some uncertainty for the business – the company is starting a thorough recruitment process and considering both internal and external candidates – analyst Mark Photiades from Canaccord Genuity isn't fazed.
"We continue to believe that Dunelm offers an attractive growth opportunity with significant share gain opportunities in under-penetrated categories coupled with further UK store expansion potential," Photiades said.
"The retirement of well-respected CEO Nick Wilkinson after nearly eight years, whilst not expected, should not detract from the group’s long-term growth opportunity."
The news came alongside Dunelm's first-half results, which showed a "robust" performance, Photiades said, with continued market outperformance despite a challenging macro environment.
The analyst highlighted that the price-to-earnings ratio of 12.9x offers good value for a market leader with strong growth prospects.
The stock was trading 0.5% higher at 978p by 1203 GMT, with plenty of upside to Canaccord Genuity's 1,270p target price.