- Currys
- 17 March 2025 13:32:52
Source: Sharecast
The bank said Currys’ recent 15% share price fall means that it now sits around 45% below pre-Covid levels, and at similar levels to March 2020, when the pandemic first struck.
"This is despite a much stronger financial position, the run of recent upgrades and an increasingly optimistic outlook driven by self-help and structural tailwinds," it said.
"The circa 8.5x price-to-earnings gives little credit for any earnings upside and is a 48% discount to peers."
Berenberg said one can argue that the combined value of Currys’ services revenue - around £700m of recurring, higher-margin, cash-generative sales - and its iD Mobile network is worth more than the current entire group market cap.
The bank said it expects its unchanged discounted cash flow-based target price of 125p to prove prudent over the medium term.
Berenberg rates Currys at ‘buy’.
At 1330 GMT, the shares were up 1.5% at 87.45p.