Berenberg nudges up target price on Currys following interims

Analysts at Berenberg nudged up their target price on electrical retailer Currys from 62.0p to 64.0p on Friday, stating cost control had delivered margin progression.

Berenberg said Currys' interim results reflected "sound strategic execution" that had generated a "significant" adjusted underlying earnings beat versus consensus expectations.

The German bank stated management has been able to increase margins through "impressive cost control" but noted that while this was "clearly a very strong result", it had retained its 'hold' rating on the stock as it awaits further evidence of cost management and top-line growth resilience against what continues to be "a difficult macro backdrop".

Berenerg added that Currys trades on 6.8x 12-month forward price-to-earnings ratio, being one standard deviation below its trailing three-year average.

"While there is a lot to like about the H124 results, we reiterate our 'hold' rating and await further evidence of cost control against a difficult macro backdrop that brings uncertainty with it," said Berenberg.

Reporting by Iain Gilbert at Sharecast.com