Broker tips: CVS Group, Currys
By Iain Gilbert
Date: Tuesday 21 Oct 2025
(Sharecast News) - RBC Capital Markets lifted its price target on CVS Group to 1,900p from 1,500p on Tuesday after the Competition and Markets Authority announced the findings of its two-year investigation into the vet market last week and suggested remedies.
The Canadian bank, which reiterated its 'buy' rating on the stock, said the CMA's proposed decision "removes any existential threat, enabling investors to refocus on solid fundamentals and a substantial opportunity to continue the roll-up story".
"We calculate that its strengthened balance sheet provides 30% upside optionality to earnings by 2029," said RBC, which noted that its previous price target included a 25% discount for perceived CMA risk.
"Rolling this forward and removing the discount would result in a £21.5 fair value in one year, but we set our price target at £19 to account for the current slower growth dynamic for the veterinary market," RBC said. "This represents a 10.2x 2027E EV/EBITDA multiple and 20x P/E."
Analysts at Berenberg raise their target price on electronics retailer Currys from 175p to 200p on Tuesday, citing a broad-based recovery across the group and what it called the most positive outlook in a decade.
Berenberg said growth was "firmly back on the agenda", with sustained revenue gains in both the UK & Ireland and the Nordics for the first time in four years. It also highlighted a £5bn-plus opportunity in under-indexed and adjacent categories, including B2B.
The German bank stated confidence in the Nordics recovery was building, with underlying earnings already tripling from FY23 lows through self-help measures. It said a return to pre-Covid EBIT margins of around 3% could add £30m to divisional forecasts, with further upside if Currys regains its FY20-22 average of 3.5%.
Currys' services business was flagged as a key differentiator, driving recurring, higher-margin revenue. Credit, repair and mobile connectivity revenues rose 9% in FY25 to £814m, embedding Currys deeper into the supply chain and boosting customer retention.
Free cash flow was said to be on a "significantly improving trajectory", with post-pension FCF expected to ramp to around £130m by FY27. Berenberg said this had already supported the reinstatement of dividends and a £50m buyback, with more to come.
Berenberg added that its sum-of-the-parts valuation suggested investors were getting the UK electricals division "for free", with the combined value of Nordics and iD Mobile estimated at £1.6bn - equal to the current market cap.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN