Dunelm Group, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Grace Gilberg from Jefferies maintained a Hold rating on the stock and has a p1,095.00 price target.
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Grace Gilberg’s rating is based on Dunelm Group’s recent financial performance and market conditions. The company reported its fiscal year 2025 preliminary results with a profit before tax of £211 million, which aligns with consensus expectations and slightly exceeds the guidance provided in the fourth quarter. Revenue growth was around 4%, and the gross margin improved by 60 basis points to 52.4%. However, the growth in active customers was minimal, and market share gains have been slowing over the past few years.
Despite a solid financial update, there are no significant new developments to drive enthusiasm. The shares have recovered well since April, but the lack of clear signs of a consumer recovery suggests caution. Dunelm’s stock is currently trading at approximately 15 times its price-to-earnings ratio, prompting Grace Gilberg to maintain a neutral stance with a Hold rating.
Based on the recent corporate insider activity of 12 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DNLM in relation to earlier this year.