A fourth quarter trading update from last year's mega merger Dixons Carphone (LON:DC.) is on the cards for investors midweek.
No doubt they will hoping to see a continuation of the strong trading reported in January this year for the peak nine week period to January 3.
And despite indications from sector peers of a slow-down in sales growth, City broker Investec expects positive like-for-like sales growth for the giant electronics retailer.
The broker last week nudged up its full-year profit before tax forecast to £374.8mln on sales of £10.89bn, on the back an upwards revised expectations of synergies as a result of the merger.
Investec is a 'buyer' and targets 510p for the shares (current price: 482.10p).
Numis rates the shares 'add' and targets 550p. It noted that the shares have outperformed the sector by 35% over the past year, reflecting the upbeat news relating to the merger and weakening/ demise of competitors."
At 18 times price to earnings for calendar 2015 earnings, the shares trade at a 5% premium to theb peer group, it highlights.
"Although we view this as ambitious in the context of the group structural margin potential, we still see tailwinds in terms of newsflow and earnings momentum," it said.
Trading for the nine weeks to Jan 3 showed tablet sales fell sharply, but this was offset by strong progress inhigher-ticket TVs and a return to growth in laptops.
Numis added that white goods continued to rise sharply, driven by onlineand possibly reflecting a catch-up in the replacement cycle...
Significant announcements expected -
Finals: Advanced Oncotherapy (LON:AVO), Workspace Group (LON:WKP)
Interim: Easyhotel (LON:EZH)
Trading statement: Dixons Carphone (LON:DC.)
Passenger statistics: International Consolidated Airlines (LON:IAG)