Currys PLC (LSE:CURY)'s recent Nordic assets investor day showcased what a high-quality business Elkjop is, according to Panmure Liberum.
the broker highlighted that Elkjop is a market leader with a 28% share.
Near-term margin targets appear achievable but these may prove cautious. If the macro improves, the group’s 20% drop-through margin will drive substantial upgrades and targets will be reset, said Panmure.
The broker added that share price catalysts are the pension triennial review that from 2015 can free up free cash flow; the reinstatement of a dividend (could offer 2-4% yield); and peak trading with tech replacement cycle + AI product rollout as attractions.
'Buy' with a 136p target is the broker’s view.
Shares are trading at 89.1p.