Currys PLC (LSE:CURY) jumped over 6% on Monday after Berenberg analysts hiked the retailer's share price target and pointed to an ever-improving outlook.
Shares in Currys sit around 45% below pre-pandemic levels despite the firm’s better financial position and stronger outlook, analysts said in a note.
Pointing to an 8.2x price-to-earnings ratio, Berenberg added Currys was trading on a roughly 40% discount to peers, with “no credit” being given “for earnings upside” ahead.
Currys’ share price target was lifted from 92p to 125p as a result, implying a prospective 60% upside on Friday’s close.
A turnaround plan since 2019 has seen debt reduced by £700 million, analysts highlighted, with further improvements set to see cash flow to equity hit £100 million by 2027.
“This financial discipline, a clear strategy and right-sized cost base, will continue to support normalised capex levels to drive growth,” Berenberg said.
A ‘buy’ rating was reiterated, with shares in Curry jumping 6.3% to 83.35p.