Summary: Currys Plc saw shares rise more than 2% following an upgrade from RBC Capital Markets, which moved the stock from a "sector perform" rating to "outperform" and increased its 12-month price target to 180p from 165p. RBC raised its FY27 earnings-per-share outlook and outlined a forecast path for revenue, adjusted pre-tax profit and adjusted diluted EPS through FY28, while flagging improved cash returns and a cleaner balance sheet.
RBC’s revision includes a 5% uplift to its FY27 EPS forecast, a change it attributes to an expected easing of operating cost pressures. The bank now sits roughly 6% to 8% ahead of consensus on EPS for the FY27-28 period, according to its published projections.
Financial trajectory modelled by RBC
Under RBC’s estimates, adjusted diluted EPS will be 13.44p in FY26, rising to 14.75p in FY27 and to 16.40p in FY28. Revenue is projected to climb from £9.34 billion in FY26 to £9.75 billion in FY27 and to £10.01 billion in FY28. Adjusted profit before tax is modelled at £190.9 million in FY26, increasing to £204.5 million in FY27 and £222.2 million in FY28.
"Currys is transitioning from being a recovery play to a likely multiyear compounder with strong cash returns," RBC said in its note.
Operational indicators and valuation adjustments
RBC cites a 50 basis point gain in UK market share during the first 36 weeks of FY26, attributing that improvement to growth in mobile, computing and appliances, as well as higher credit adoption and B2B expansion. Credit adoption rose 200 basis points to 25% over the period identified by RBC.
The bank highlighted Currys’ mobile virtual network, iD Mobile, which added subscribers at an 18% year-on-year rate in FY26 to reach 2.6 million customers. Applying a conservative £100 per subscriber valuation, RBC estimates iD Mobile’s implied value at about £260 million, which it notes equals roughly 16% of Currys’ current enterprise value. This implied valuation would decrease the calendar-year-2026 EV/EBIT multiple from 5.5x to 4.5x in RBC’s analysis.
In the Nordics, Currys operates under the Elkjop and El Giganten banners and holds the number-one position in each market, the note states. RBC increased its Nordic EBIT forecast for FY27 by 4%, pointing to a dominant 37% share in Norway and a 25% share in Sweden. The bank also notes that rate cuts and a temporary reduction in food VAT have supported consumer spending in those markets. According to RBC, Currys holds over 50% share in TVs and AI laptops through its Giganten banner.
Balance sheet and shareholder returns
Currys expects to finish FY26 with net cash above £170 million, reversing from net debt of more than £800 million at the end of FY20. RBC includes a £50 million share buyback in its models for both FY27 and FY28 and forecasts a rising dividend per share - from 2.25p in FY26 to 2.75p in FY28.
RBC’s 180p price target is the average of its valuation approaches: a discounted cash flow implying 177p per share using a 10% WACC and 0% terminal growth rate, and a sum-of-the-parts base case of approximately 187p. The stock is trading at 10.5x calendar-year-2026 price-to-earnings on RBC’s measures. The brokerage sets a downside scenario of 115p and an upside scenario of 225p.
Key takeaways
- RBC upgrades Currys to "outperform" and raises its 12-month price target to 180p, citing improved earnings momentum and a stronger balance sheet.
- Analysts project adjusted diluted EPS rising from 13.44p in FY26 to 16.40p in FY28, with revenue moving from £9.34 billion to £10.01 billion over the same span.
- Operational strengths flagged include UK market-share gains, mobile subscriber growth at iD Mobile and a leading Nordic position under Elkjop and El Giganten.
Risks and uncertainties
- Execution risk on cost reduction - RBC’s EPS upgrades assume lower operating costs as headwinds ease, which depends on actual cost outcomes in FY27 and FY28.
- Valuation sensitivity to iD Mobile assumptions - RBC’s implied £260 million valuation for iD Mobile (based on £100 per subscriber) materially affects the enterprise multiple and therefore overall valuation.
- Regional demand variability - Nordic performance cited by RBC benefits from recent rate cuts and temporary VAT measures; further changes to macro or fiscal conditions could alter consumer spending patterns.