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A glimmer of hope for Currys’ share price?
Currys Plc has increased its earnings outlook for the year ending April 29th. The company has raised their forecasted profit from £104m to £110m – £120m due to stronger sales than expected in the UK and Ireland.
Although the company faces difficult trading conditions in the Nordic countries, progress is being made to reduce costs by £25m. Net debts for Currys are £100m, towards the lower end of their forecasted £150m. However, over the past two years, their debts have declined by 58%.
The company’s new profit outlook is significantly lower than last year’s £186m, which was due to store purchases and cost-cutting measures. Currys has warned that profits will remain lower in the future due to the cost-of-living crisis. The Scandinavian business of Currys faced surplus inventory after keeping prices the same while demand for goods slowed and rivals engaged in hefty discounting.
How to trade the Currys share price?
Refinitiv data shows a consensus analyst rating of ‘hold’ for Currys – 3 strong buy, 4 hold and 3 sell – with the median of estimates suggesting a long-term price target of 62.50 pence for the share, roughly 19% above where the share is trading (as of 27 June 2023).
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