- Currys
- 15 July 2025 10:15:40
Source: Sharecast
The bank said that following around £50m working capital investments made in the last two years towards growing iD mobile, its proprietary cohort analysis suggests the benefits from the investment will become apparent in the near term.
Citi estimates that iD mobile will account for the majority of the circa 2% per annum growth in UK & Ireland like-for-like sales it forecasts for FY26e-28e, "implying market conditions need not be favourable to sustain revenue expectations".
"We estimate that 30-45% of UK&I EBIT will come from iD mobile FY26e/FY27e/FY28e (versus circa 20% in FY25a), as the headwinds from ramp-up of newer cohorts fade," Citi said. "We believe iD Mobile alone is worth circa £600m or 45% of Currys’ current market cap."
Citi also said it models £50m/£20m/£35m of buybacks in FY26e/FY27e/FY28e, driving a cumulative earnings per share uplift of 1%/5%/7% in addition to the circa 2%-3% dividend yield.
The bank sees further upside in the shares despite a strong year-to-date performance.
At 1010 BST, the shares were up 1% at 120.30p.