RBC Capital downgrades Dixons, upgrades WHSmith

The bank cut Dixons to ‘sector perform’ from ‘outperform’, maintaining the price target at 150p.

"We expect Dixons Carphone to consolidate its market leading position in electricals and to manage down its losses in mobile," RBC said. "However tougher comps and potential macro headwinds are ahead, and following a good run by the shares we now think they are closer to fair value."

The bank upgraded WHSmith to ‘outperform’ from ‘sector perform’ and lifted the price target to 2,200p from 2,100p as it argued the retailer’s international markets are providing an encouraging precedent for a recovery in UK travel demand.

RBC said it expects WHSmith’s relative position to strengthen after the pandemic.

"Meanwhile WHSmith's High Street business is proving more resilient than we expected, helped by the high-growth Funky Pigeon business," it added.

At 1035 BST, Dixons shares were down 1.4% at 143.50p, while WHSmith shares were up 4.5% at 1,915p.