Broker tips: Currys, Oxford Instruments

(Sharecast News) - Citi reiterated its 'buy' rating on Currys on Tuesday and lifted its price target on the stock to 150.0p from 121.0p, saying that iD Mobile and buybacks were set to provide material upside. The bank said that following around £50.0m working capital investments made in the last two years towards growing iD mobile, its proprietary cohort analysis suggests the benefits from the investment will become apparent in the near term.

Citi estimates that iD mobile will account for the majority of the roughly 2% per annum growth in UK & Ireland like-for-like sales it forecasts for FY26-28, implying "market conditions need not be favourable" if it hopes to sustain revenue expectations.

"We estimate that 30-45% of UK&I EBIT will come from iD mobile FY26e/FY27e/FY28e (versus circa 20% in FY25a), as the headwinds from ramp-up of newer cohorts fade," Citi said. "We believe iD Mobile alone is worth circa £600.0m or 45% of Currys' current market cap."

Citi also said it models £50.0m/£20.0m/£35.0m of buybacks in FY26/FY27/FY28, respectively, driving a cumulative earnings per share uplift of 1%/5%/7% in addition to the approximately 2%-3% dividend yield.

Analysts at Berenberg lowered their target price on manufacturing and research firm Oxford Instruments from 2,600.0p to 2,500.0p on Tuesday but noted the group had made a "quantum leap in cash" from self-help efforts.

Berenberg noted that Oxford Instruments was transitioning into a more commercially focused organisation, leveraging its "strong technology portfolio" with greater operational efficiency and rigour.

The German bank stated that it views Oxford Instruments' compound semiconductor exposure as "a key driver" of revenue and profit growth in the coming years.

"Following three years of flat operating profits and volatile cash generation, we forecast an inflection in the coming 12 months, said Berenberg. "The valuation is attractive, with scope for a re-rating as cash generation doubles by FY28E."

Bernberg also noted that with a 25% potential upside, it had opted to reiterate its 'buy' rating on the stock, adding that it sees scope for a re-rating as improved financial metrics are delivered.