Berenberg highlights buying opportunity at Currys after H1 beat

(Sharecast News) - Berenberg has raised its target price for Currys after a stronger-than-expected interim report from the electrical retailer on Thursday, saying the recent pullback in the stock offers a good buying opportunity for investors. The broker upped its target for the shares from 200p to 210p, keeping a 'buy' recommendation.

"Currys continues to set itself apart from wider retail peers as it delivers yet more upgrades and enters 2026 with encouraging momentum," Berenberg said in a research note.

"The c15% share price fall since late October offers a good chance to buy into shares that remain far too cheap, in our view."

First-half results from the company revealed adjusted EBIT of £54m, up 32% year-on-year and ahead of consensus forecasts, helped by an 8% year-on-year increase in revenues, ongoing profit recovery in the Nordic region and tight cost control in the UK and Ireland.

Along with slightly lower interest guidance, Berenberg has raised its full-year adjusted profit before tax forecast by 5% from £170m to £178m.

The broker also highlighted the company's ongoing focus on margin and cash drop-through, which resulted in a 68% increase in first-half free cash flow to £84m, supporting a £16m dividend payout and completion of £30m of the planned £50m share buyback.

"Even after these payouts, and an £82m pension contribution (covering the last higher full-year payment, before dropping to £13m per year from FY 2027E), Currys' net-cash position stood at £133m (excluding the £15m pension deficit) - up £27m yoy. This healthy balance sheet supports both the progressive dividend policy and scope for ongoing share buybacks," Berenberg said.

The stock was up nearly 10% at 138.91p by 1146 GMT.