Currys PLC

Currys PLC (LSE: CURY) is an FTSE 250 listed omnichannel retailer. The company operates through 720 stores across six countries while retailing technology products and service. This Report covers the Investment Highlights, Conclusion, and Recommendation on the stock.

Key Recommendation Rationale – Sell at GBX 132.04

• Resistance near Current levels: CURY’s stock price crossed the Resistance (R2) which was stated in the previous report on 08 August 2025 therefore, there can be a possibility of a decline in resistance levels. Considering the market conditions and the price action, it is prudent to exit the stock.
• Nordics Revenue Pressure: Revenue in the Nordics fell to £3,420mn from £3,506mn, a decline of (2) % reported and flat on a currency-neutral basis. Like-for-like sales were flat for the year, with weakness in Mobile and declining market offsetting gains in smaller domestic appliances. Despite marginal recovery, the lack of top-line growth highlights demand softness in this key region.
• Margin Stagnation in UK&I: Although UK&I adjusted EBIT increased to £153mn (+8% YoY), the EBIT margin was flat at 9%, with no expansion versus last year. Operating expense to sales ratio worsened by (20) bps as wage inflation, higher marketing expenses, and increased expensed investment offset sales growth and gross margin improvement, limiting operating leverage
• Macroeconomic Risk: The market sentiments can remain weak in the short term due to the subdued consumer disposable income, geopolitical tensions, and political risks.

Share Price Chart 

Valuation Methodology: Price/ Earnings Approach

Conclusion

CURY’s valuation may face pressure as the industry navigates regulatory hurdles, economic slowdown risks, currency volatility, potential U.S. tariffs, and intensified competition driving price wars. For conducting the valuation, the following peers have been considered: Halfords Group PLC (LSE: HFD), Pets at Home Group PLC (LSE: PETS), etc.

Given its current trading levels, the recent financial performance, strategic investments and partnerships, market expansion and cost optimization strategies, relative valuation, and associated risks, it is prudent to exit the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the Current Market Price of GBX 132.04 on 04 September 2025, 08:35 AM, GMT+1.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 04 September 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.