Currys PLC (LSE:CURY) is becoming "investable" again, according to RBC Capital Markets, which has upgraded the stock to 'outperform' from neutral''.
Shares rosed 2% to around 49p as the broker also increased its price target to 70p from 60p.
RBC pointed out Currys' financial leverage and travails in the Nordic region have left it firmly in the investor "no-fly zone" in recent years.
But its proposed disposal of Kotsovolos in Greece will leave it with a net cash position.
It thinks the sale "should also give investors more confidence in the longer-term prospects for Currys, and will allow management to focus on developing its already strong positions in major markets".
Plus, it retains a strong relative market position in a sector ripe for consolidation, and its valuation looks very undemanding, RBC said.
The broker said Currys remains a strong omnichannel player, with high market shares of 28% in the Nordics and 24% in the UK.
"It has scale and distribution advantages, plus strong supplier support to showcase products", which "should serve it well in a more benign outlook for interest rates in major markets".