Citi has raised its price target on Currys PLC (LSE:CURY) to 184 pence from 168 pence and reiterated a 'buy' rating following what it called robust full-year results.
Currys, the electricals retailer, reported adjusted pre-tax profit of £191 million for the year to April, in line with guidance the company had upgraded in May.
The dividend of 3.0 pence came in above the 2.4 pence the bank had forecast and ahead of consensus of 2.5 pence.
Citi highlighted that the board expects to reduce dividend cover, a measure of how comfortably earnings fund the payout, from 4.5 times to around 4.0 times in the current year, with scope to cut it further over time.
Management described current trading as very solid and said it was comfortable with company-compiled consensus for adjusted pre-tax profit of £198 million in the year to April 2027.
The bank now models group like-for-like sales growth of 2% in the current year, up from 1% previously, though it built in a small gross margin headwind to reflect potential supply chain pressure.
Citi also flagged a planned £50 million buyback for the current year, above the £34 million pencilled in by consensus.
The higher price target reflects the earnings changes and a re-rating across the retail sector.
