Currys PLC (LSE:CURY) is “focused on restoring profitability” according to house broker Liberum, which retained its buy rating and target price of 135p on the stock.
Analysts at the investment bank noted that the latest updates from its Nordic competitors, Komplett and Verkkokauppa.com, showed some positive signs.
Specifically, their results suggest that the electrical goods retailer can focus on profitability after overstocking and discounting heavily to focus on market share for much of last year.
“It suggests their aggressive behaviour, which has also hit Currys’ margin as it sought to maintain market share, will prove temporary,” said analysts.
“While consumer demand looks set to remain subdued for some time, more rational peer behaviour, alongside Currys’ self-help – already bearing fruit in the UK&I – and, in time, a better demand outlook, will make a very positive combination.”
Komplett’s management also noted that there are signs that price increases are now being pushed through to consumers, albeit stock levels still remain somewhat elevated.