Credit Suisse trims target price for Dixons Carphone, retains outperform

They conceded that the company's exit from its joint-venture with Sprint and remarks about a challenging mobile market in the UK did not help sentiment.

However, they pointed out how investors were seemingly 'looking-through' successive positive updates from the company, focusing instead on the broader downbeat picture for UK consumer demand and Britain's economy.

Be that as it may, core trading at Dixons continued to be "robust" and the broker still held a "positive" view of the company.

Its analysts believed Dixon's was set to continue gaining market share at the expense of independents and grocers. Industry-high margins were sustainable too, Credit Suisse said.

Valuation was also supportive, with the shares changing hands at a forward price-to-earnings multiple of just 8.2 and sporting a 4.1% dividend yield they were "cheap", the analysts said.

They were also at a significant discount versus electrical retail and UK retail peers.

So while Credit Suisse trimmed its target from 420p to 400p to reflect the lower growth profile at Dixon's after jettisoning its JV with Sprint, it reiterated its 'outperform' recommendation.