Currys' Strong Outlook
RBC Capital Markets Upgrades Currys to Outperform, Citing Strong Performance and Future Growth
Key Points
RBC backed its upgrade with detailed earnings forecasts, lifting its FY27 adjusted EPS estimate by 5% and saying it would be 6–8% above consensus for FY27–28, projecting adjusted EPS to rise from 13.44p in FY26 to 16.40p by FY28.
RBC said Currys’ valuation is “reasonable,” citing trading at 10.5x CY26 estimated price-to-earnings and a 2% dividend yield, while flagging the main risks as macro-related.
On leadership, Currys said Alex Baldock is set to leave on 31 August for Boots, with Fredrik Tønnesen to become CEO on 3 August 2026; the reports also highlighted Baldock’s earlier turnaround steps, including exiting Carphone Warehouse, selling Greek operations and rebranding the group.
RBC added that in the Nordics, its “dominant” positions are supported by specific focus areas including B2B, gaming, and kitchens.
Currys shares jumped as much as 6.5% on Tuesday after RBC Capital Markets upgraded the electronics retailer to "outperform" and raised its price target to 180p from 165p, according to Sharecast. The bank said Currys is no longer just recovering — it is becoming what analysts call a "multiyear compounder," a business that can grow earnings steadily for years to come.
The upgrade came alongside a bullish read from the broader analyst community. Deutsche Bank holds a buy rating with a 175p target, while Berenberg goes further at 185p, per Business Cloud. All three banks see more upside ahead for the FTSE 250 retailer.
RBC Sees Earnings Power the Market Is Missing
RBC lifted its FY27 adjusted earnings-per-share estimate by 5%, according to LSE. The bank now forecasts adjusted EPS rising from 13.44p in FY26 to 16.40p by FY28. It says those numbers are 6–8% above what the broader analyst community expects for FY27–28 — meaning the market may be underpricing Currys' profit potential.
The bank called Currys' valuation "reasonable." The stock trades at 10.5 times its estimated 2026 earnings, with a 2% dividend yield. RBC flagged the main risks as coming from the wider economy — not from inside the business itself. The main bull case rests on services: insurance, tech support, and a mobile network called ID Mobile, which generate higher margins than simply selling televisions and laptops.
UK Resilience and Nordic Dominance Drive the Upgrade
RBC pointed to two core strengths. In the UK and Ireland, Currys has held its ground despite pressure on household budgets, growing its market share — which GlobalData estimates at around 24% of UK consumer electronics. Credit adoption is rising too, with more shoppers using Currys' own financing to spread the cost of big purchases.
In the Nordics, where Currys trades as Elkjøp, RBC described the group's position as "dominant." The bank highlighted specific growth pockets: business-to-business sales, gaming, and kitchens. A wave of major sports events in 2026 and 2027 is also expected to lift TV demand, giving the retailer a natural boost to hardware sales, per Ask Traders.
Baldock Exits After Decade-Long Turnaround, Tønnesen Steps Up
The upgrade lands against a backdrop of leadership change. Currys confirmed that CEO Alex Baldock will leave on August 31, 2026 to become CEO of Boots. Baldock led the group through a major restructuring: closing standalone Carphone Warehouse stores, selling the Greek Kotsovolos business for £156m, and rebranding the entire group under the Currys name, according to Business Cloud.
Fredrik Tønnesen, who ran the Nordics business and is credited with stabilising its margins, will become group CEO on August 3, 2026. Analysts at Hargreaves Lansdown noted that naming a successor early removes the "key man risk" that Baldock's departure might otherwise have created. Tønnesen has said his goal is to roll the high-margin Nordic service model out across the UK.
Bears Still See Macro Risks Lurking in the Credit Story
Not everyone is convinced. Analysts at Shore Capital remain cautious, warning that Currys is sensitive to UK household income. If the Bank of England keeps interest rates high for longer, the bet on rising credit adoption — buying now, paying later through Currys — could flip from a strength into a bad-debt problem, according to research from the firm.
Some regional analysts in Norway also push back on the Nordic optimism, arguing that local rival Power is still cutting prices aggressively to win customers. And critics of the leadership plan say Baldock's "lame duck" period until August could slow big decisions. For now, though, the market is listening to RBC — and Currys shares are responding, per Ask Traders.
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