DFS Furniture, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Andrew Wade from Jefferies upgraded the rating on the stock to a Buy and gave it a p200.00 price target.
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Andrew Wade has given his Buy rating due to a combination of factors that highlight both operational progress and improved outlook at DFS Furniture. He notes that first-half gross sales grew around 9%, significantly ahead of what had been built into full-year assumptions, even though part of this strength reflects the unwinding of an unusually large order backlog. Despite a slowdown in order intake growth versus the prior year, the company still managed to gain ground in a broadly flat market, demonstrating underlying competitiveness. In addition, the Winter sale commenced broadly as planned, giving the company enough confidence to raise its profit before tax guidance for FY26 to a range that implies a double‑digit uplift versus previous market expectations.
Andrew also emphasizes the company’s strong cash generation, which has materially reduced net bank debt from the prior year, thereby strengthening the balance sheet and reducing financial risk. He interprets this deleveraging, together with the earnings upgrade, as evidence that the strategic and operational initiatives put in place are gaining traction. The appointment of an experienced executive, with a strong financial background, to the CEO role is seen as an additional positive that could support further execution and value creation. Overall, he views the update as reinforcing the positive momentum in the business and sees further upside potential, underpinning his Buy recommendation.
According to TipRanks, Wade is a 4-star analyst with an average return of 5.5% and a 53.49% success rate. Wade covers the Consumer Cyclical sector, focusing on stocks such as Games Workshop, Pets at Home, and THG.
In another report released today, TipRanks – PerPlexity also upgraded the stock to a Buy with a p203.00 price target.