Currys PLC (LSE:CURY) investors were unfazed by the retailer’s warnings over swelling costs next year on the back of Budget as shares surged following Thursday’s interim update.
Having flagged growing demand for artificial intelligence laptops and solid trading ahead of its peak Christmas trading period, Currys’ update made for upbeat reading despite an anticipated £32 million annual uplift in costs following October’s Budget.
Cash flow surged from £4 million to £50 million during the first half, while an adjusted £9 million pre-tax profit was recorded, against a £16 million loss last time out.
The outlook around AI-powered laptops, for which Currys said it held a 75% share of the market, appeared to draw attention though.
AJ Bell analyst Dan Coatsworth noted the shift towards such must-have products offered a “saving grace” for Currys.
“Demand is growing for these products and Currys is laughing all the way to the bank,” he said.
Charles Stanley’s Garry White added: “It’s not just earnings at US big tech that has momentum generated by the rise of AI - high-street stalwart Currys is reaping the benefits too.”
Panmure Liberum and Berenberg both doubled down on ‘buy’ ratings for Currys on the back of the update, citing further profit and free cash flow improvement ahead.
Panmure also lifted its share price target from 135p to 155p, noting Currys was “a stand-out in a consumer landscape trapped by lack of growth and earnings momentum”.
Shares jumped 14.4% to 90.35p on Thursday.