Berenberg nudges up target price on Currys following interims
Currys
82.05p
16:35 07/11/24
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.
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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