Leading bank highlights Currys' hidden gem as it upgrades price target

Deutsche Bank has upgraded Currys PLC's price target to 150p from 121p, maintaining a "buy" rating, primarily citing the substantial growth potential of its iD Mobile business. Following a £50 million investment, iD Mobile is projected to drive 2% like-for-like sales growth in the UK and Ireland from 2026-2028 and contribute 30-45% of UK/Ireland EBIT, significantly up from 20% in 2025. Deutsche Bank values iD Mobile at £600 million, nearly half of Currys' current market value, highlighting its significant, underappreciated asset status. Additionally, Currys plans £105 million in share buybacks over the next three years, anticipated to boost EPS by up to 7% by 2028, reinforcing the positive outlook for shareholder returns.

Analysis

Deutsche Bank's upgraded price target for Currys PLC to 150p underscores a significant re-evaluation of the company, driven by the growth and intrinsic value of its iD Mobile division. The bank highlights that a £50 million working capital investment over two years is positioning iD Mobile to become the primary engine for Currys' projected 2% annual like-for-like sales growth in the UK and Ireland for fiscal years 2026-2028. This growth is notable as it appears less dependent on strong macroeconomic conditions. The division's contribution to UK and Ireland EBIT is forecast to expand materially, from approximately 20% in 2025 to a range of 30-45% by 2026-2028. Critically, Deutsche Bank's standalone valuation of iD Mobile at roughly £600 million represents nearly half of Currys' entire market capitalization, suggesting the market is significantly undervaluing this asset. This positive outlook is further supported by a robust capital return program, including £105 million in planned share buybacks over the next three years, which are expected to boost EPS by up to 7% by 2028, and a consistent dividend yield of 2-3%.

Key Decisions for Investors

• Investors should re-evaluate Currys using a sum-of-the-parts methodology, as the standalone valuation of its iD Mobile unit at £600 million suggests the core retail business may be significantly undervalued at the current share price.
• Consider the dual-catalyst potential from both the organic growth of iD Mobile, which is expected to drive earnings, and the company's commitment to shareholder returns via a £105 million buyback program and a 2-3% dividend yield.
• It is prudent to monitor the company's execution on growing the iD Mobile subscriber base and its contribution to EBIT in upcoming reports, as this is the central pillar of Deutsche Bank's bullish thesis and the 150p price target.