Shares in Currys climbed 4% today after major investment bank RBC Capital Markets upgraded its assessment of the electrical retailer’s stock.
RBC upgraded Currys to ‘outperform’ from ‘sector perform’ and lifted the price target to 180p from 165p, pointing to an attractive valuation and the potential for further share gains.
Its shares are up 23% in the year to date.
The bank said Currys is transitioning from being a recovery play to a multi-year compounder with strong cash returns.
“Its strong relative position should allow for further share gains, and growth in higher margin services and adjacent categories,” RBC said.
Currys has seen market share gains in the UK and Ireland, as well as good growth in recurring service revenues, credit adoption, B2B and newer categories such as eco products, home & family and health & wellness.
It is the market leader in all its markets in the Nordics, RBC added.
“We expect TV sales to have picked up recently, with both Sweden and Norway in the World Cup, and we see further scope for increased services and add-ons to help drive margin,” RBC noted.
Currys recently named its next CEO when Alex Baldock departs for Boots this autumn.
Baldock joined the electrical retailer in 2018 amid heavy debt and declining sales and turned around its fortunes, exiting Carphone Warehouse, selling its Greek operations and rebranding the group.
Set to leave for the health and beauty retailer on 31st August, he will be succeeded by Fredrik Tønnesen (pictured). The latter will become CEO on 3rd August 2026.
Tønnesen has served as chief executive of Currys’ Nordics business since March 2023, with responsibility for approximately 40% of group revenue. He has more than tripled operating profits.
He brings over 20 years of experience with the group, having started his career on the shop floor as a sales assistant and subsequently serving as managing director for Norway and Nordics COO.