Brokers backing Dixons Retail as a ‘buy’ ahead of half-year market update

16th December 2013

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On the back of bullish expectations brokers are tipping Curry’s and PC World owner Dixons Retail as a ‘buy’ ahead of the group’s half year market update on Tuesday writes Philip Scott.

The FTSE 250 listed group’s UK and Irish business is likely to prove a particular winner, helped partly by the demise of Comet and the popularity of tablet computers say analysts.

The business which can trace its roots back to 1937, when Charles Kalms choose the name out of the telephone book for his first photographic studio, has witnessed its shares rocket by no less than 91% over the past 12 months, and by 25% over the last six.

But the despite the strong rise Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers says prior to the results overall analyst opinion points to a ‘buy’. Just last week brokers at both Deutsche and Investec Securities re-iterated their ‘buy’ recommendations on the stock..

Bowman says: “In Northern Europe, same store sales are likely to have grown, while similar sales for its Southern European operations are again forecast to have fallen.

“Nonetheless, the group’s recently agreed exit from under-performing businesses continues to assist sentiment, whilst expanding online sales and the retailer’s exposure to a recovering UK economy remains highly favourable.“

Dixons ended a five-year experiment as DSG International in September 2010. The firm  admitted the DSG name had been unable to resonate strongly with suppliers, the market, and staff according to Digital Look.

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