RBC Capital downgrades Dunelm, shares slide
Dunelm Group
1,121.00p
15:45 15/11/24
Dunelm was under the cosh on Tuesday after RBC Capital Markets downgraded the homeware retailer to ‘underperform’ from ‘sector perform’ and slashed the price target to 1,000p from 1,300p.
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15:45 15/11/24
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15:44 15/11/24
"We view Dunelm as a well-managed business with a strong position in the UK homewares market," it said.
"However, with cost-of-living pressures persisting, unfavourable movements in the UK housing market and only a moderate store expansion story, we think that growth will be more difficult to come by now."
As a result, RBC said it sees greater upside potential in travel - SSP, WH Smith and Dufry - and discount retailers such as Associated British Foods and B&M European Value, "given strong topline momentum and meaningful expansion for these names".
At 0945 BST, Dunelm shares were down 5.4% at 1,060p.