Currys PLC (LSE:CURY) has received positive backing from broker Panmure Liberum, which highlighted the growing impact of the retailer's credit offering in driving recurring revenues and customer loyalty.
Management of the FTSE 250-listed electronics chain plans to grow credit-related sales to £1.5 billion and increase customer adoption of its 'flexpay' product.
According to analyst Ben Hunt, this is helping attract higher-margin, more valuable shoppers, with the credit proposition generating incremental, high-margin profit streams.
A strong start to the new financial year was recently revealed, with like-for-like sales performing well, gross margins improving, and a £50 million share buyback announced.
Hunt noted signs of recovery in the Nordics, where improving trends reported by rivals Verkkokauppa and Komplett suggest potential for upgrades ahead.
With the shares trading at 11.2 times 2026 estimated earnings, with high single-digit EPS growth projected over the next three years, Hunt reiterated his 'buy' rating and target price of 180p versus Friday's close at 146p.
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