Dunelm Group PLC (LSE:DNLM) is Deutsche Bank’s top pick among the UK household retail market, which it says generally needs improved housing transactions, spending power and confidence.
Retailer Dunelm gets an upgrade to buy due to an attractive margin profile, high return on capital and track record of cash returns.
“Our 1,300p TP implies c.15% upside on a 12-month view, but we view the stock as a quality multi-year compounder.”
Elsewhere, Kingfisher PLC (LSE:KGF) remains as buy as Deutsche Bank sees recovery potential at an attractive valuation, despite political uncertainty in France.
Wickes Group PLC (LSE:WIX) is a hold as wage costs present a large headwind and improved big-ticket spending is now needed from here to drive earning momentum in our view.
Victorian Plumbing Group PLC (AIM:VIC) gets a downgrade to t hold as the shares have performed strongly this year and much of the future growth now priced in.